Restricted stock will never fully vest

[Cobra9777]

I did negotiate a deal whereby my leaving (at 52) was officially characterized as “retirement “ and that, under the terms of our plan, meant I got prorata vesting, I.e 100% for the ones due the February after I left (in August), 66.66% of the ones due the year after and 33.33% of those due the following year after that. So yes, I left “value” behind but I felt like I had a deal. But getting it was completely dependent on the plan rules allowing the retirement exemption and a boss who was willing to push for me.

I tried that strategy (or something very similar) and the boss was willing. But plan rules only allowed exceptions in the case of a company-wide RIF... a so-called "bridge" to early retirement for employees between 50 and 55 who were willing to voluntarily retire as part of a company-wide RIF. No such luck for me.

 

[walkinwood]

You have to change your mindset about RSUs or any other stock options.


You have been promised those RSUs IF you work additional years at the company. Just like your salary and future raises. You're promised that too, if you continue to work there.



You can try to always try to negotiate something better, but only you know your chances of success there.


In the end, it comes down to your priorities. I had to leave RSUs & options on the table too, but 10 years after I did that, I have no regrets. On the other hand, the value of my options would not have made a significant change in my net worth.

 

[CardsFan]

OP,
You also need to keep in mind that RSU's and stock options are controlled by the whim of the company. In 2005 I had significant options that would have vested in September. In August MegaCorp sold our division and POOF the options were gone . To add insult to injury my vested options had to be exercised within one year, since I was one week shy of my 50th birthday (at 50+ you had 5 years to exercise).

 

[Kelor]

I did a ton of digging into our shareholder meeting report. By all accounts, since this is a privately held firm, they have more flexibility on the stock distributions. It appears if I delay my retirement from March 2019 to August 2019, it would put me at a years plus age category that they have discretion on vesting 100% of the shares (not guaranteed).

I'm actually a bit disappointed that I noticed this potential windfall, as its now making me reconsider my March 1 goal.

 

[thepalmersinking]

I plan on treating my vested RSU’s at retirement like found money. I do not include them in any financial calculation now. They will be immediately sold and the funds will be put into a money mkt that I may live off of unit 59.5 or I may just let it sit there.

 

[cathy63]

I plan on treating my vested RSU’s at retirement like found money. I do not include them in any financial calculation now. They will be immediately sold and the funds will be put into a money mkt that I may live off of unit 59.5 or I may just let it sit there.

Usually RSUs get converted to actual stock shares as soon as they vest. Are yours different? Why not sell at least a portion of them as soon as you have long term gains and open window?

 

[l2ridehd]

I went to my boss and discussed the possibility I would retire in 18 months. I had a lot of RSU's I was going to lose. But we worked out a deal where I would consult 60 hours a year for 3 years exclusive to them for only expenses, they gave me my company car and the RSU's vested over those 3 years. So very well paid for those hours as it turned out.

The key factor to RSU's is they don't want you to leave. And they work well to prevent you from going anywhere. So figure out something that is a win win for both you and the company. They kept me limited to consulting only for them, which was fine by me as I was done working anyway, and I got a 50K car only two years old with 30K miles and all my RSU's. All for 180 hours of work.

 

[Texas Proud]

I went to my boss and discussed the possibility I would retire in 18 months. I had a lot of RSU's I was going to lose. But we worked out a deal where I would consult 60 hours a year for 3 years exclusive to them for only expenses, they gave me my company car and the RSU's vested over those 3 years. So very well paid for those hours as it turned out.

The key factor to RSU's is they don't want you to leave. And they work well to prevent you from going anywhere. So figure out something that is a win win for both you and the company. They kept me limited to consulting only for them, which was fine by me as I was done working anyway, and I got a 50K car only two years old with 30K miles and all my RSU's. All for 180 hours of work.

I think it makes a difference in how high in the org you are and how big it is...


I had very few RSUs given to me only once... but I was a low level employee with a firm that had over 200,000 employees... never would have gotten that deal... plus, never had a company car

 

[big-papa]

I'm 57 and have worked for companies with RSU's ever since companies switched from mainly options to mainly RSU's. Haven't been lucky enough yet to work for one with an automatic vest for age/service. And since I've changed companies a few times, both voluntarily and involuntarily, I've been in the situation multiple times now where I've had to leave RSU's on the table. I fully expect that on retirement day, I will do likewise, but I'll probably at least time it such that I will have just vested in some... I'd consider it a nice parting gift.

 

[JoeWras]

My Mega solved the problem for me. Stopped granting RSUs to most in my grade level. Only the select few get them.

No golden handcuffs. I'm free.

So, to the OP, best of luck and consider it a fortunate problem to have.