What happens to your unvested RSU, in case WF terminated you. Do they vest immediately or do they get forfeited?
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RSUs - Restricted Stock Units. They are basically “free” stock granted for a variety of reasons and are generally to encourage retention. They are sometimes called LTI - long term incentives.
While in the past they were for but a chosen few, the bonus comp rule change at the end of 2021 made them much more ubiquitous. Any bonus comp over $50k was converted to RSUs and the number of shares the value was equivalent to vest over a 4 year period.
Let’s say your bonus was $60k - you get $50k in cash then the number of WFC shares equivalent to $10k. Let’s say they are $50/share at bonus time. That’s 200 shares for your $10k. Those will vest on a 4 year schedule so 50 shares per year become available for you to sell or hold. If you sell, they hold back taxes on the full value at the time of sale as if it were a cash payment because the shares were granted to you instead of you buying them, where you are only taxed on the gains (aka difference between buy and sell prices).
Pro: the stock price can go up between the grant ($50) and the vest - your bonus is now worth more! Con: price can also go down - your bonus is worth less. You also have to wait out the vest period so what you may have gotten as an immediate cash payment in years past is now drawn out and you risk losing it if you leave voluntarily or are fired for cause.
My guess is the amount that will be RSUs this year will be lower than last years $50k cut off. Just a guess though.
Charlie and his three favorite people sit and play Hungry Hungry Hippos and they then divide the shares proportionately, but all go to Charlie
Rtu and RTO what’s the diff ? Thx .
Lay off you keep. Retire you keep. Quit or terminate you lose.
Years ago I was texting with a young woman. She was kind of flirty so I jumped in with both feet, and sent her an extremely detailed x rated text.
I never heard back from her again.
The point is, RSUs are for rubes.
Haha. Commentators who don't earn enough to get RSUs as part of compensation..
Or weren't around in 2018 when every FT employee in US was granted 50, or you were but you're too stupid to realize they were given to you, vested in 2020, taxes withheld so you have 35-38 shares in your name...
What's RSU?
Is that like RTO? They both start with R and have 3 letters.
Will I ever have RSUs?
I'm starting to not feel so good about this whole RSU business. RTO is enough I think.
No more RSUs. That's effective immediately. Just focus on RTO.
it depends on your plan and vesting I would check whatever plan/documentation you have. be careful if you get a layoff notice, if you voluntarily quit or leave for a new job before the official notice/layoff date, you could also be subject to clawback in addition to the forfeiture of unvested units.
Laid off, you get them. Terminated you don’t.
Unvested RSUs are forefeited. It's the whole point of vesting.
If you were laid off, I believe it is included in your severance package. If termed for cause or voluntary, you lose out. I'm sure California has different laws though.
Read the plan documentation for the year the Restricted Share Units were granted. There have been changes.
Not sure what a rsu is but keep it just give me my severance already!