"When employment is terminated (voluntarily or not) the unvested RSUs are cancelled. You get nothing. " - yeah, and notice how DK kept saying "as long as you are employed at the time..." - In other words, don't hold your breath on getting paid for unvested RSUs since she also mentioned that once the merger is complete we'll be at 2/3 of the total employed number we currently have upon the merger. You know anyone with RSUs unvested will get axed to save money.
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https://otp.tools.investis.com/clients/us/citrix/SEC/sec-show.aspx?FilingId=15516124&Cik=0000877890&Type=PDF&hasPdf=1
"Each outstanding restricted stock unit award that is not subject to performance-based vesting (the “Company RSU Awards”) shall be automatically canceled and converted into a Converted Cash Award with respect to an aggregate amount in cash equal to the product obtained by multiplying (i) the aggregate number of shares of Company Common Stock subject to such Company RSU Award by (ii) the Merger Consideration;"
Also:
"Each of the Converted Cash Awards assumed and converted as described above shall continue to have, and shall be subject to, the same terms and conditions (including vesting, acceleration of vesting and forfeiture) as applied to the corresponding Company stock option, Company RSU Award or Company PRSU Awards, as applicable, immediately prior to the Effective Time."
When employment is terminated (voluntarily or not) the unvested RSUs are cancelled. You get nothing.
What does the RSU contract state in the event you're fired or laid off?
@vlb+1f4p61Xn yes and the agreement states they can do exactly what we have been told is being done. No acceleration of RSU vesting and substituted by replacing with cash value with existing vesting schedule.
How do people commenting know:
A: There will be no acceleration of RSUs
Or...
B: That RSUs will be converted to cash and paid out by the acquiring companies
Or...
C: That the RSUs get canceled entirely and rendered worthless
Has anyone read the contractual terms of their RSUs?
There will be no acceleration of the RSUs. The RSUs may be converted to cash and given at the same vesting schedule.
The deal is first announced/agreed. Then there is at least 3-4 months before the acquisition closes. In that time period, RSU's will continue to vest. So most people will vest their usual March/April RSUs.
In the best of circumstances, the unvested RSUs will be accelerated, so those who are fortunate to have them will vest more stock that will then be purchased by the PE consortium. However,... Depending on how the deal is done, this may not happen. Basically, they may lay off everyone first, and then hire them into the new entity or do some other scheme to avoid the accelerated vesting. In that situation, the keep people somewhat happy, they will offer some sort of a cash bonus that may approximate the RSU value. This is a more likely outcome to preserve their cash and still keep personnel.
401K is yours so you keep it. It will likely continue as it was before, with potentially a less generous match.
ESPP will be gone since there is no share to talk of.
On other benefits, expect some trimming like greater portion of health care costs to be shifted to employees, etc.
The PE will squeeze as much as possible but not make it so painful that people will leave in droves. They need to at least double their money, or possibly triple it. That does not mean the company valuation goes up that much, just what they invested.
Overall, PE is far less generous than the prior regime. Its their money, and they will let you know its their money! Good luck with that Citrites!
They will disappear into the sky…