I heard that JG14 employees were no longer given stock options, but rather Restricted Stock Units (RSUs). Is that true? What is the rationale? Is it because the strike price this year is so low that the company would be giving out too many shares 10 years later?
7 replies (most recent on top)
Such a cynical policy change
It's best practice to unload your GESPP stocks as soon as possible, which is one year. The risks associated with having a significant chunk of your portfolio invested in a single company (one that also happens to be your employer) far outweigh the practically non-existent tax benefit of holding onto it a year longer than necessary.
16 & 17 are restricted to only 50% options, we can’t pick 100% this year. Love how when the stock is at a low the company decides to step in and make financial decisions to “help us” mitigate risk.
I’m sure our senior executives won’t be subject to these same rules.
14 &15 were restricted to RSUs but no restrictions for higher than that…
GESPP is off the topic.
FYI, the best practice is trading the GESPP stocks two years later from the date purchase, to gain the most from tax perspective.
I'm confused. I started my role in Summer 2022 and the GESPP offered to me was the ability to buy $MMM at 15% discount with the condition that I have to hold the shares for at least 1 year from the purchase date.
Is this RSUs, stock options, or just discounted stock?
Yes it is true. Only RSUs for the T5 plus club moving forward, no more stock options.
As for rationale, one can only speculate.
My thinking is that stock options that have been given out in the last 8 years or so,have basically been worthless. Hence highly paid employees are hurting in terms of total compensation and therefore giving RSUs are a way to placate that crowd. Also note that RSUs can only be cashed out after 3 years and hence it could be a way to tie down employees to 3M.
Hence low confidence in future 3M stock price and a strategy to tie down T5 employees and above could also be factors here.