I still have 2 years of unvested RSU’s. What happens to them?
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Post ID: @2imt+1iNIDytg
Related to severance benefits, check section 6.07a of the merger agreement filed on January 31, 2022 in the investor relations webpage. It states, “… for a period of twelve months following the Closing, Parent shall cause Surviving Corporation and its respective Subsidiaries to assume and honor, the terms of the Company’s severance guidelines set forth in section 6.07(a) of the Company Disclosure Schedule and provide the severance payments and benefits thereunder to any eligible Continuing Employee whose employment is terminated under the circumstances described therein prior to the 12-month anniversary of Closing.” Looks like the severance benefits are maintained for a period 12 months after the deal closes. So if the deal closes on 09/30/22, the CTXS severance scheme applies through 09/30/23. Yet, don’t get yourself fired for cause as otherwise you won’t get severance.
Fan-F-ing-tastic... You're right. So basically they gave me retention RSUs just to make me a target for layoffs and not retain me at all. Here I thought I might be safe for now due to my tenure and how much it would cost them in severance. Would be far cheaper to can me now or in early 2023 before the real bill comes due.
I suppose it's for the greater good as long as it helps.pay for the gnome's PRSUs.
One question - based on the merger agreement, is the Citrix severance calculation going to be honored until end of 2022 or one full year from the sale close date.
“If you get let go, you are not forfeiting it; you are losing it.
If you quit, then you are forfeiting it”
Seems like you are getting too concerned with nomenclature. When you lose your unvested RSUs you are legally forfeiting those awards regardless as to whether you leave voluntarily (i.e., you leave on your own) or involuntarily (i.e., you get let go). If you don’t believe me, read your RSU agreement and you will see the forfeitures language noted under the vesting conditions section and reference to “continuous employment”. Consequently, the original poster who made the forfeitures comment is correct.
Yet, the main point is that the RSUs are a retention mechanism that is controlled by the company. If you have a lot of unvested RSUs and that is your sole reason to stay at the company, my advice is for you to start looking for a job right now. The reason being that absent the ELT members who will vest regardless, anyone who has a big number of unvested RSUs is costly for Citrix to maintain until the awards vest as they have to pay you cash upon vesting equal to $104 x number of RSUs vested. As the company is expected to have cash flow issues post merger, anyone with a material unvested RSU balance is likely on the chopping block. So please plan ahead and good luck with your job search.
If you get let go, you are not forfeiting it; you are losing it.
If you quit, then you are forfeiting it.
One thing to clarify is that if you get let go before you vest on your remaining shares, you forfeit those unvested shares. So something to think about given the sizable culling that is expected post merger and if the RSUs are the only retention mechanism you have.
They are only paying out on RSUs if you are still employed on the originally planned Vesting date.
They still vest at the same time, except the price is now locked in at $104. Even when the deal closes and there aren't any other shares of "Citrix" you will just get a cash payout of $104 x number of shares at whatever time frame they were going to vest normally.