If you got laid off, will your RSUs auto-vest? Can’t seem to get a direct answer.
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here @gyk nails it - 100% true
It depends. I reached out to HR to ask this same question in anticipation of layoffs and was told it depends on the language of your RSU Grant agreement. You can view this if you log into S.com > EAC . Under the listed RSUs you will see a hyperlink to the accepted Grant Agreement.
My grant agreement says no payment is required as an obligation of Schwab, but it does say an RSU becomes vested and distributable in a few instances including: ) Your separation from service, if the separation qualifies as a retirement or a severance eligible termination. It defines "severance eligible termination" as a separation from service entitling you to severance benefits when you have signed your Severance Agreement under The Charles Schwab Severance Pay Plan (or any successor plan).
Only if you’ve worked at the company for 10+ years and are 55 years old or older. The RSUs autovest, due to my understanding, because they consider it retirement.
This is the correct answer.
If you get laid-off or fired before the RSUs vesting date then the RSUs don't belong to you but they belong to the company. Therefore, you don't get anything (no money at all).
Only if the RSUs are vested (meaning now you are the owner of those shares), then you have to pay taxes on them on the year they are vested at the price of the day (perhaps the closing price). And then you also have to pay on any gains you may have when you sell the RSUs (which are your shares).
Only if you’ve worked at the company for 10+ years and are 55 years old or older. The RSUs autovest, due to my understanding, because they consider it retirement.
Are yours above water?