Assume I and others are laid off, what can those of us with VMware stock expect from Broadcom? Are they offering to pay the full $142 per share?
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If you are still employed on close date, usually the unvested RSUs convert to unvested RSUs of AVGO.
If you are laid off before close of the deal, or laid off after the close of the deal, you will LOSE all the unvested RSUs, just like you would today if were laid off.
Broadcom isn't going to convert and vest RSUs magically the day of close. It will all still be unvested.
@1rrk+1h2mI62c: if you are laid off, you will loose all unvested RSUs. If you are kept and accept a new job at Broadcom, unvested VMW RSUs will be converted to AVGO RSUs with same vesting schedule.
So just to confirm as I am little confused....if I have 75% of my RSUs still to vest at the time of deal closing and I then get made redundant....will those 75% of RSUs that would have vested over the course of 3 years now be accelerated and converted to Broadcom shares and paid in full? That's kinda what I am reading here so in a nutshell if I am made redundant I won't lose unvested RSUs..is that correct? Sorry my first timr in this position so be good to be clear on this
My CA stock was converted to Broadcom shares at the time of closure and vested on the same schedule as Broadcom shares. I ended up making a lot more this way then holding onto the very flat CA shares.
Options are not RSUs
Exactly. They will take your stock grants, value them in dollars at the 142. Then convert that to RSUs in broadcom with the same $ amount and same vesting dates.
So imagine you had a June 1 2023 RSU vest of $50K in vmw at 142, for 352 shares.
One the close date (lets assume February) they convert that to 50K in Broadcom stock at lets assume about 570 bucks a share. so you get 87 or so shares in broadcom, worth $50k and still vesting on June 1 2023.
Seeing how our stock price has been the last 2 years and that in june of 2021 (just a year ago) I sold of an RSU vest at over $160/share and before the announcement we were in the 90s.... Really broadcom is paying a premium here to you (and all share holders). If not this June 1 stock vest would have been in the 90s. So something that 1 year ago was worth 20K, this year's vest (without the acquisition) would only be worth a little over $12k. straight conversion at this price is a GOOD thing.
So this is what the internal FAQ states on this topic
Q. What happens to my equity awards (e.g., restricted stock units (RSUs) and stock options)? A. If a transaction closes, all outstanding PSUs and RSUs VMware held by employees will be substituted for shares of Broadcom, and the same vesting schedule and award terms and conditions will continue to apply. Outstanding options will be accelerated and cashed out at closing.
Does that not mean we keep unvested RSUs?
Except for the very upper echelons of management (not you, since none of them would even post here) your unvested RSUs will converted if you stay, and piped to /dev/null if you leave for any reason. It is called a change-in-control and retention agreement, here is an example one.
https://www.sec.gov/Archives/edgar/data/1014473/000119312509227646/dex1004.htm
Section 2.3
If you are still employed then I would expect they make new offer and convert to their RSUs.
I second this question, and would also like to know if they are going to pay for unvested RSU's?