What happens to u vested RSUs if you are laid off? Do we loose them or do we get them as part of severance package?
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Not-vested awards will go back to pool. You will loose all of non-vested awards.
This is confusing. The HR article states “generally any awards not vested as of your termination date will be cancelled upon termination…” However when I read my grant agreement, it clearly says “restricted stock units become vested and distributable as of the earliest of the following… 4) your separation from service, if the separation qualifies as a retirement or a severance eligible termination…”
So which is it?
I’m not asking for your opinion on it. I’ve worked through org changes before and this is a 100% fact.
Read your RSU agreement folks. Under vesting mine clearly says that they vest immediately in 5 instances.
- The vesting date passes
- My death
- My disability
- Retirement or A SEVERANCE ELIGIBLE TERMINATION
- Schwab is acquired
They go poof.
Unless . . . you happen to be 55 and have enough service to qualify for retirement (5 years I think). Your unvested stock/ISOs vest in that case.
That’s another reason they will lay you off by October. Lower bonus pool and RSU vest by 20% using this one trick!
@uah+1nUOLvtF is correct. There's even a jw myhr article about it.
Mmm, no MDs don't do that. This is a policy.
Depends. Usually lose them but MDs are able to get exceptions for people
Wrong. If they are NOT vested, you lose them. If they are already vested, you retain them. If you are above a certain age, you may have them auto-vest, depending on your tenure.
Ooo that changes my maths.
If you are talking key contributor awards… they would vest immediately of you are laid off, but they are forfeit if you leave yourself or are terminated for cause.