I’ll be getting RSUs this year for the first time. Are the RSUs based on a maximum dollar amount of your CL and ranking or is it a set number of shares no matter what the stock price is? I.e you get 20 shares at $100 and still 20 shares at $150 stock price.
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RSUs are a joke. Look at how long they take to vest. Do you really want to stay at this shithole that long?
It’s CL and ranking tied. From there, they’ll give u the shares thru a bank. Ofc there’s gonna be vesting period to hold u back from leaving.
@dq+1kzc84ctm Absolutely missing the entire point of RSUs. The "reward" you are considering is about consistent performance of the corporation as a profitable and successful corporation. Yes, it doesn't compound into your base salary; I get that.
The entire idea of RSUs is securing your continued commitment to corporate success and not necessarily your singular success. This makes sense for late-career and executive roles in the corporation. Get over yourself.
In truth, I hate what the corporation has done with this process of forced NSI/NI and PIP/MLRP with no tie to prior performance. The entire process has been manipulated and has been turned into an distracting and unproductive process under the guise that it was going to benefit those that had taken a performance hit at some point in their career. (Truly the Trojan Horse of performance assessments.)
This is all really available information. I swear people post on here just to post.
@ek You make assumptions you know NOTHING about. I’ve been receiving RSUs for a VERY long time. Ah, but some sorry excuse for human beings must have attention. You poor thing!
@dq Spoken like a loser who does not get any RSU.
@dq How does this program effect REs and NREs? On the surface it sure seems like this compensation structure has a disproportionately lower motivational value for employees who are retirement eligible or nearing retirement eligibility, even though they may have delivered the same or greater performance.
@OP Why would ANYONE be motivated by a “reward” for last year’s performance that they may not realize the value of for several years? Work hard. Deliver results. Exceed expectations. Get ranked highly. Then comes the big reward announcement:
“Congratulations! You had a great year. Here’s your RSU award. Please wait several years to find out what you actually earned.”
Wow. Nothing says “we appreciate what you accomplished” quite like making employees wait years to benefit from the work they already completed. Long-term incentives have their place. The problem is calling a delayed retention tool a performance reward.
The irony is that a supposedly risk-averse company has created a program where the company gets the benefit of the employee’s performance today, while the employee accepts the uncertainty of future value, market performance, vesting requirements, and the expectation to stay. That’s not a reward. That’s a retention leash wearing a name tag that says “Recognition.”
Meanwhile, competitors are rewarding employees for the value they create—not asking them to wait years and hope the timing works out. If someone earns a reward for last year’s performance, recognize and reward that performance when it happens.
A future incentive is not the same thing as a performance reward.
What an embarrassment that a once-great American company has fallen so far that it now calls delayed compensation a “reward” instead of simply recognizing the people who earned it.
@b3 yes, dividends are paid out with some taxes withheld
They withhold by not paying out your full allotment. If you are getting 80 shares paid out then they pay you 60 and withhold 20. If receiving 100, they withhold 30 and pay out 70. It all gets reported on your W-2 which is good because that withholding rate may be too high - you can get any overwithholding back when you file your taxes.
Does the company withhold income tax from the unvested share’s dividends?
Set shares as you indicate
Don't get too excited about them, yes it's some money... eventually
From CL 26 thru 29..it ranges between 80 and 440 sh. with 50% vest at 3 year and remaining 50% at 7 year. Remember federal and state taxes must be at vesting date based on market price of stock at vesting date. This is taxed at your normal wage based tax bracket. You also receive dividends before vesting but these dividends are taxed as normal wage income (not qualified dividends). Once vested you can hold your after tax shares and the dividends are taxed at 15 or 20% plus you may owe obamacare taxes of 3.8% depending on your income level (AGI). most of us pay 18.8% or 23.8% on dividends.
Note since tx does not have a state income tax, working in tx saves you between 5 and 10% on taxes on your dividends.