Now that the stocks will vest every 6 month, even when they layoff people the will only pay you half of what they used to and save more money for the SLT deep pockets.
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Previous director paid almost 250k in stock per year
I received $15K RSU. after tax that less than 10K.
How much did you get. btw I am a L07 IC.
I'll use $30K as the total RSU you are "awarded".
It USED TO BE you got the money over 3 years. $10K vested every 12 months over a 3 year period. What I UNDERSTAND it now to be is you still get the money over 3 years, but it's now $5K vested every 6 months over 3 years.
Now let's say you get laid off 7 months after your award. Per the Severance FAQ (and in my experience), assuming you follow all the instructions, you're vested/awarded the entirety of that current year's award. Any future awards are cancelled. In the Used to be example, that would be all 10K of the current year. In the current/new, since you'd already have been vested the first $5k, you'd be vested for $5k.
No great "savings"...just managing open shares (as they continue to try to both grant shares to employees and reduce/consolidate shares on the open market.
It got cheers because now you don't have to wait a full year to access any of that money. That one time 50% bump in RSUs didn't actually help anyone out in the short term because it took a full year for you to access any of that money.
No one is getting paid any extra. But most top employers let RSUs vest quarterly, so it's a cheap win for the SLT to make this move.
Wasn't 3 years mentioned too? Couldn't figure out why this got cheers.
Just remember, ANY financial decision a company makes will always be with the interest of that company in mind. These decisions are made to look good for the employees but there is always an underlying motive that'll benefit the company.
Close, but not exactly. Issuing RSU shares, which then vest to you, costs the company nothing (they do not buy shares at market value then hand them over to you).
However, as outstanding share count increases, the EPS decreases, dividend payment expense increases, and perhaps the impact of future share buybacks is diminished slightly. But there is no immediate increase in severance cost because of RSUs.
100% this decision was primarily made to reduce severance costs.
That beings said, being able to vest twice a year is a nice improvement if you manage to make the cut.