I have a lot of unvested RSU shares vesting early November, what happens to those - do I just lose them all?
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The ‘rule of 70’ has a catch- you need to make it to the first vest date or you lose it. Also it only started in 2023 so it only applies to RSU grants from 2023 forward.
This is truth. Nov 2023 to be specific is the first RSU to have this condition.
I went through 2 LRs both times any unvested RSUs were taken back. Significant penalty considering Cisco is the one who is breaking up. RSUs should be a 2 way street but unfortunately Cisco has nothing to lose by giving them.
The ‘rule of 70’ has a catch- you need to make it to the first vest date or you lose it. Also it only started in 2023 so it only applies to RSU grants from 2023 forward. Those laid off yesterday should allow for Nov 2023 grants to hit their first vest. Unfortunately those laid off in Feb didn’t benefit from rule of 70 vesting. Those RSUs were harvested for addition to the senior leader compensation pool.
Couple things.. the example Edgar is for Boeing. The RSU vesting policy will vary by company. Cisco is a “Rule of 70” company, which means, if your years of service plus your age equal 70, all of your RSUs will vest upon departure. (I do think but cannot recall for sure) if you are actually fired for cause not laid off, that may not hold true. You can find your date specifically for rule of 70 in Workday. Log in to Workday, click on your picture, top right.. click on Compensation, left side navigator, click on Other tab in the middle.. It will show an entry, Eligibility Date. On or after that date RSUs will auto vest upon exit barring any other rules.
Good point. RSUs are a retention tool, and yet we lay off 5-10% per year?
To be fair, this isn't just a Cisco thing. I was once told "we can't give you a pay rise, but you're one of few people who have been awarded RSUs". To which I laughed and said "oh thanks, an IOU", and started looking for a job elsewhere as it was a massive red flag. RSUs are a tactic companies use to seduce employees to stay, and should NEVER be expected to be guaranteed.
To the ELT and senior management, Cisco is just a cash machine funded by RSUs from stock buybacks-- and layoffs. Sadly it doesn't really have much to do with the quarter-by-quarter success of the company. I wish they would just own up to it :) -- but I guess it's OK because all elite corporate management in the US and elsewhere is doing the same thing.
Read your package details. It’s there very clearly.
The RSUs vest until 12/15 which is nice since most RSUs are awarded in November.
I believe they started accelerated vesting for RSUs awarded in 2022 or later if you have had them for a year and meet some combination of age and years of service.
Otherwise, you do lose your hard earned RSUs.
In my case, the unvested RSUs more than paid for my severence so my LR was a net gain for Cisco.
Unvested RSUs get donated to fighting eurocentric privilege.
Termination due to Layoff, Disability, or Death. In the event your employment is terminated by reason of involuntary layoff, disability, or death, your RSU payout, including any Earnings Credit RSUs, will vest after termination of employment. Payment for such awards will be made as soon as administratively possible, but not later than 60 days after your termination of employment.
https://www.sec.gov/Archives/edgar/data/12927/000119312512087727/d307697dex101.htm#:~:text=In%20the%20event%20your%20employment,vest%20after%20termination%20of%20employment.
I was caught in the last LR. You will loose your unvested RSU's. Cisco will notify you of your last day then they give you a balloon payment. That last day is the last day for your unvested RSU's. Best of Luck to you, and I am sorry your having to go through this.
They are stolen. This was the biggest thing that made me HATE Cisco. Layoff, fine. Taking RSUs was low down sc-mmy.
Apparently it's not illegal, but it should be.
all unvested RSU will fast vest ALL to your account if you are LR'ed by any employer, this is common sense, Google it, you will know.
White collar crime at work.
You will get your November RSUs vested, but that's it. The rest is gone.
We need to notify the SEC
Cisco commit crime in broad daylight.
Whatever doesn’t vest you loose. This is Cisco’s “stock buy back” program also known as stealing. It should be called a steal back.