Hi, curious to know what happen to RSUs if you are LRd or leave the company. RSUs seem to dried out. Not received any so far.
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same story over and over: we 1st started to eliminate cpc (cisco performance review) at year 2012, and then from that point on, due to there is no performance review, reorg started to happen at random and still going on.. what sad thing to see is that the acquantiance network on these reorganization, aka: if you don;t have connections, you are doomed and has to depend on this web site. to see what is coming next, which is so predictably true..
worker bee got axed on these with no questions asked, the people with connections is able to move around into different org and stay hidden.. however, worker bee's left on the production line to support the last customers got yanked..
another punch on these stock options, mine was taking away after 90 days from notification dates, hence what is the purpose of these previous stock options?
this vs back in 2012 or 2013, all laid off people get one year salary at that time, not no more.. we use IBM method and payment guidelines for layoff.
If you leave or are LR'd, its the same impact on RSUs. Any RSUs that are not vested go away. Period. I lost a good number of unvested RSU's when I got LR'd.....it was an extra s---er-punch, considering I received the RSUs for a "job well done". Guess not.
@1vem - What happens to your RSUs will be determined by either your on-boarding agreement or contract of employment. If there's nothing specific in there then, yep, you'll lose them. Don't count on good-will. If it's not written down, it didn't happen.
https://www.google.com/amp/www.sfgate.com/business/networth/amp/How-to-avoid-paying-double-tax-on-employee-stock-6021347.php
Whatever folks decide, read this if you sell and do your own taxes. Rules have changed for 2015. Nothing like an IRS notice of deficiency, on top of all the decisions on the personal value of the options. Choose wisely...
To @N2P1aa5-rlz and others, if you get hit then don't expect much in the way of the PL & I bonus. I got hit in September of last year and ended up getting around 1/3 of what I would have normally got (based on my own personal history). I heard a lot of people got nothing. Somebody who posted on this blog last year stated that he only got a flat $250.
Adding on to the question at hand -
I was part of a recent acquisition, and my buy-out from the former company was some cash, and the remainder in the form of RSUs vesting over X years. If I resign, I would assume I forfeit the RSUs, but if I were to be LR'd, I find it hard to believe that I wouldn't be entitled to some kind of negotiation around the unvested RSUs. Any thoughts/experience on this?
Thank you all three respondents. As I don't have RSUs I was keen to know what I am missing. Sounds like nothing or not as much ;-)
The RSUs and ESPP are nice, but they aren't going to be a life-changing event when/if you cash them in. My own experience is, while I appreciated them, they provided a false sense of personal economic security. I was mid-level and around for quite some time until recent LR. All along my path I sold my ESPP and RSUs as soon as they vested. Yes it helped with a few expenses like car down payments and home improvements over more than a decade. The big fish get the big options, so don't let their existence or vesting cloud your decisions in life. Plus tax time can be a royal treat to calculate on your own in April, especially if you sold combinations of RSUs and ESPP, and had a good bonus. Add a spouse working and you can easily go into the next tax bracket, be surprised at how much taxes you owe at tax time, and have to find a good CPA to make sure it's all submitted correctly. There have been big changes with tax year 2015 on required Schedule D cost recording for options, so don't be surprised if you receive an IRS deficiency note if you did your own taxes that year, and thought TurboTax was calculating everything on ESPP and RSU basis correctly.
Be thankful you have RSUs and ESPP but don't let it control your path if mid-level. Options are mechanisms for the upper crust to reap the big rewards. Us mid-levels might be able to put a new roof on the house or upgrade that Toyota base model on our own budget, to a base Lexus; your question to yourself is - how much is it really worth to my path in life?
Sometimes it can be possible to negotiate a slightly extended leaving date in order to let the next set of RSUs vest.
Same argument about bonus - if you're on the books on July 31st then you are eligible for PL&I bonus.
It's an irrelevant question if you don't have any.
RSUs do not become yours until they vest. If you leave or get LRed any non-vested RSUs return to the company.
Let's say you get 800 RSUs now and that the first tranche vests in May 2018.
If you get LRed this summer, you walk away with nothing.
If you survive to next summer, you get 200 shares and the remainder go back to Cisco.