Been allocated RSUs for the first time.
Could anyone help me understand the T&Cs for that?
Have not yet received an email about it. Hence, I am asking. TIA.
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Anyone knows the date by which we can expect the email confirming the T&Cs of the RSUs?
I was told this week but just wanted to check if anyone had a different information.
How did you know you are allocated without receiving an email about it ?
Your manager will tell you before you receive the email.
If you receive RSUs, is there a lock-in period before which you can sell the stocks?
RSU's at O (and many other places) typically vest over a 4 year period. So, after 1 year, you can sell a quarter of them, the next year another quarter, and so forth. This is done so you will not leave, unless of course you get an offer that will offset the loss of your unvested RSU's. If you get RSU awards every year it can add up.
If you receive RSUs, is there a lock-in period before which you can sell the stocks?
Just thinking if I get laid off or find something better, isn’t it best cash that in at rather the soonest second?
IC3 and IC4 have received RSUs too. Not just IC5.
I can attest to that.
Hence, wanted to check if it even makes sense staying or should I just continue looking for a way out anyway?
If you can get a better deal somewhere else, take it.
My understanding was RSUs had a strike price. True? Not true?
My understanding is that RSUs are being done differently this year. Instead of the award being denominated in number of shares, as has been done before, that this year you get a dollar amount. At some point done the line that is converted into shares at some price per share (AKA the strike price). How that strike price is defined I do not know.
IC3 and IC4 have received RSUs too. Not just IC5.
Does only IC5 and above gets RSU?
Not a manager but received RSU.
Other big companies are offering RSUs and you don't have to be in a manager role to get it.
First hand knowledge: Oracle is working RSUs a bit differently this year. Your RSU grant is a dollar figure. They’ll take that dollar figure and divide it by the closing common stock price on October 1st. That product will determine the total number of shares for your grant. You’ll get 25% of those total shares each year over the next four years, starting in 2023.
Am told by my line manager as well but have not received any email communication. Seems like some employees already got informed. Hope to receive the notice in early September
The real risk you take is hanging around for RSUs that you won't even get if they let you go. I would not let that be the criteria for staying. If you had a contract vesting you that would be different if there were enough RSUs there. If you feel you are in a position to find something better, I would suggest taking the new opportunity. You should already know what Oracle provides career-wise. Not much for 99% of the employees.
Let's say you get 400 shares RSUs. Each year, say July, you get 100 shares. The day you get them, it's added to your income in your paystub, along with estimated taxes (about a third.). So Fidelity holds back 33 shares to cover your taxes, and you get 67 shares in your account. Once in your account, you can sell them, but you then have to pay taxes on any gains you may have made from this vesting date. (Let's say that they showed up in your account on vesting day at $70. But then you sell them a week later at $72. You owe the IRS for the $2 gain per stock.)
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I did not just dream of it.
I have been informed by my line manager but the email communication will arrive early September, I have been told.
My understanding was RSUs had a strike price. True? Not true?
RSUs are a gamble. As long as it’s money you can afford to lose. It’s not income. It’s not even a bonus. At least you don’t need a tax attorney when you buy a lottery ticket. Unless you win the billion.
"Can someone share how taxes work when it comes to RSUs? "
This is the worst place on earth for tax advice, talk to a professional if you really need to know. Personally speaking I sell RSUs as they vest which allows me to treat them similarly to income. Note this practice creates 2 taxable events, one for the vest ($X dollars of income) and one for the sell (short term capital gain or loss, depending on how the market went before I managed to sell). This is absolutely not advice.
Some people hold on to the shares. You need to figure out what is right for you.
How did you know you are allocated without receiving an email about it ?
Has the Rsu vesting email communication sent ? Last year I recall was much earlier in second week of August.
Can someone share how taxes work when it comes to RSUs? Is it 30% or more?
I can promise you, I haven’t been given 2000 stocks!
As per my calculations, the total annual I would make is still way below the average salaries these days outside of Oracle because every company except Oracle seems to be taking into account inflation.
The RSUs are nice to hear but their actual yearly value feels petty.
You get 25% of the grant each year for 4 years. Lets say you got 2000 RSUs: 500 per year. That would be $37,500 before taxes at $75/share. Not bad. Say the stock zooms back up to $95/share, that’s $47,500 (again before taxes). Hmm, better. Or the stock goes down with the rest of the market (or a bad quarter) to $55/share, now $27,500. Not so good. Can you make more than $27,500 over your current salary per year?
RSUs vest in 4 annual installments starting a year from the grant date. The number you be given is the total grant and each vesting is one quarter of the total.
Yes, figured that.
Hence, wanted to check if it even makes sense staying or should I just continue looking for a way out anyway?
Congratulations.
Wait for your Email, but recognize they are simply a way to tie you down to the company.