Every year I get around $30K to $50K stocks and the vesring date goes for 3 yrs (for old ones it is 4 yrs)
Is there anyway to early vest these ?
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I’ve heard they give you 3 months accelerated RSU vesting.
actually of you LRed, you can negotiate expedited RSU vesting according to the agreement, but not sure what procedure is
Bro no one here is poor enough to be eligible for a roth
You pay tax on the current RSUs the day they vest so may as well sell and go.
@2een+1oOgjYRh, yep that is what I meant - sell when they vest; and diversify into regular market. Why have a big pool of vested and unvested RSUs. When you can sell them, sell them, then use them on a Roth; just general US Stock Market index fund. You will still be in the market, and you will be using your Roth (get taxed now, never get taxed again).
Ask anyone that worked for one of the old bemoths like Nortel or MCI; it is a BAD idea to keep company stock that you are able to sell, as part of a ESPP or option plan. Diversify. You already give your time to the company, don't be stuck holding their deferrered compensation stock (after you can sell it).
Sell immediately and consider them salary.
They are RSUs, you cannot sell them until they vest 🤡
RSUs are a retention tool. If you stay, you get then\m, if you want to leave then you have to leave them behind.
We mostly get 5k each year and thats about it after tax worth nothing… I will i was getting 30-50k!
Sell immediately and consider them salary.
Every year I get around $30K to $50K stocks and the vesring date goes for 3 yrs (for old ones it is 4 yrs)
that is pretty mediocre, you are probably middle of the pack in your team.
Best thing to do is dump the RSUs, as they vest, and put proceeds in a Roth. Same for ESPP; when it is long term capital gain; sell it and put in Roth simple US overall stock market index fund. If married, use proceeds to max your spouses as well as yours.
Did the above while at whole time at my 17 years at Cisco and retired at 56. Ran into my old Director two weeks ago and he did the same, also retired at 55.
Easier to do than what you think. If you get LR'd, you then take the package and also start annuity from your 401k. Any time 55 or over, you can pull from 401k in current employer for any reason, if you leave.
“Your RSU's are worthless if you get laid off.“ RSUs are a shell game so they don’t have to pay you cash. The stock isn’t going to go up anytime soon and WHEN (not if) you get laid off, you’ll walk away from a lot of cash.
I agree, leave on your own terms.
It should be part of the negotiation.
At a competitive company where one can't add massive licensing fees with no negative consequences adding on another $50-100K in RSUs for one candidate over another without such a demand in a less than ideal job market isn't a great starting point, and for any company developing modern technologies "Cisco" is going to be another negative.
Add in the fact that not every hire turns out to be a good fit and many companies do a keep/dump analysis a few months in you could still end up in the street with nothing.
I'm not saying it can't be done, but you better know how to play it.
Yeah I agree with previous posts. Companies looking to bring you on have no issue paying out those RSUs. It should be part of the negotiation.
The whole point of RSUs is for retention, so obviously you can't very early.
But if you're worth it, any new company you join will at least match what you have
Nice thoughtful post @1kbm+1oOgjYRh. I too am a late-stage end-of-career guy. I read posts here about how guys like us don't want to face the job market, but I can tell you since Covid and the WFH culture, I've had at least 4 offers in the past 3 years that I seriously considered. Not as much $$ as I currently make, but certainly enough to tempt me to leave the Cisco minefield of politics and poor project management. No reason to leave at the moment. I also got some RSUs this round. I didn't want them, but hey I hope to stick around long enough to at least collect that first installment.
Thanks @fxn+1oOgjYRh for mentioning "walkaway value". I had not even considered thinking about how much my unvested RSUs will be worth when I quit and using that as a "if you want me, here's what it costs to get me". On the one hand, you can use it as a talking point that your current company values you and you have something to bring to a new company, but on the other hand, it may make you too expensive to get compared to their other candidates who might look just as good as you on paper. That's going to be a tough decision to make when it comes down to interviewing.
I certainly agree w/ @ugx+1oOgjYRh that they are golden handcuffs and that, as @1htv+1oOgjYRh said, it's a no cost insurance to the company to encourage you to stay, at least for the first 12 months. And cheap insurance over the next couple of years. The biggest question for the company to decide in the next round of layoffs is whether or not you bring enough value to the team to be worth the cost of keeping you and paying out those outstanding RSUs or is it better to add your unvested RSUs value to your cost of wages that can be saved by letting you go and bringing in a contractor to replace you (since they can't immediately rehire an employee to do your job and still say you were "redundant" or "not needed").
Leave on your own terms or you will leave on terms dictated by others.
I've said the same thing before, but with the caveat of if you're worried about being LR'd, or if you're unhappy with your job. It's definitely better, if you think you're going to be cut or you want to quit, to do it on your own terms so that you get to find the next role and give your notice (however much you decide to give) so that you don't have an interruption in your income stream. It's a real cr-p shoot when you get LR'd because you don't know what the current job market situation will be when that happens. While companies overall can be hiring, that doesn't mean that the companies in your local area are the ones doing the hiring. And worse, if there's only a dozen or so openings in your local area and Cisco lets go 100 people who all do the same type of work as you, then you've got a 10-1 competition rate to get one of those local openings. If you choose your own timing, then that greater competition rate isn't a factor because you're still employed while you look and there's not a sudden glut of candidates to compete against.
However, if you like your team, and your role, and you don't feel like there's a huge target on your back because of office politics, and you feel like you're marketable, then why leave? Or, in my case, I'm a late-stage end-of-career old guy which means that no matter what company I work at, I have that "old guy" target on my back. And do I want to join a new team/company where I'm expensive, just like I am at Cisco, but now I'm the new guy and why should they keep me over someone who's been part of the team for a long while now? It's not an easy choice to just say you should leave.
Your RSU's are worthless if you get laid off. It's no cost insurance so you'll stick around until they are done with you. Leave on your own terms or you will leave on terms dictated by others.
Golden Handcuffs baby!
Yes, it's called walkaway value when you land a new job. If the new company really wants you, they compensate for your unvested shares at your current job.