RSU Vest Date

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Bokonon
Posts: 4
Joined: Fri Dec 11, 2020 3:37 pm

RSU Vest Date

Post by Bokonon »

Hi Bogleheads,

I'm currently working at a software company and have been here slightly less than one year. My compensation package includes RSUs that vest over a four year period, the first 25% vest after I've been with the company for a year (and some change). This initial vest date for me is March 15th.

I've recently accepted an offer at another company. They were willing to work with me on the start date so that I was able to have my current RSUs vest before leaving my current company. I start with the new company on March 22nd.

I've just had a discussion with my wife about when I should put in my notice to my current employer. She is of the opinion that I should put my notice in on March 15th and let them know that I will be working through the end of the week. That way if the company decides to terminate me without letting me work through the end of the week I wouldn't be at risk of losing my RSUs. I'll be honest I would feel bad about giving such short notice, but I definitely understand her perspective.

Here is my question: If I were to put in my one-week notice on the 15th and the company decided to terminate me on the same day, would I still be in the clear for my RSUs to vest? Would it be better to wait until the 16th? This is my first time receiving RSUs so I don't have any experience with how any of this works.

Thanks :happy
HawkeyePierce
Posts: 1800
Joined: Tue Mar 05, 2019 10:29 pm
Location: Colorado

Re: RSU Vest Date

Post by HawkeyePierce »

Read your equity comp agreement.
rebellovw
Posts: 755
Joined: Tue Aug 16, 2016 4:30 pm

Re: RSU Vest Date

Post by rebellovw »

I know my RSU's show the date that they will land in my fidelity account - so I'd hold off and wait until you have them in your account - then give notice - especially if they are valuable. Also - it is usually a two week notice one gives.
Topic Author
Bokonon
Posts: 4
Joined: Fri Dec 11, 2020 3:37 pm

Re: RSU Vest Date

Post by Bokonon »

rebellovw wrote: Thu Jan 21, 2021 7:04 pm I know my RSU's show the date that they will land in my fidelity account - so I'd hold off and wait until you have them in your account - then give notice - especially if they are valuable. Also - it is usually a two week notice one gives.
I'm aware that it's normally two weeks notice. However if I put in two weeks notice on the 8th and they decide to terminate me that day instead of letting me work through the rest of the two weeks then I'm screwed.
AnEngineer
Posts: 341
Joined: Sat Jun 27, 2020 4:05 pm

Re: RSU Vest Date

Post by AnEngineer »

Sorry to say now, but if you wanted it worry free, you should have timed it to give two week notice after that vest.
Topic Author
Bokonon
Posts: 4
Joined: Fri Dec 11, 2020 3:37 pm

Re: RSU Vest Date

Post by Bokonon »

AnEngineer wrote: Thu Jan 21, 2021 7:24 pm Sorry to say now, but if you wanted it worry free, you should have timed it to give two week notice after that vest.
Thanks and yeah I agree. The new company wanted me to start working for them like yesterday.. so I'm happy that they were willing to wait a couple of months as it is. The timing of this whole situation hasn't been ideal.
Afty
Posts: 1569
Joined: Sun Sep 07, 2014 5:31 pm

Re: RSU Vest Date

Post by Afty »

HawkeyePierce wrote: Thu Jan 21, 2021 7:01 pm Read your equity comp agreement.
+1. It should be spelled out in the agreement. You also might be surprised at what it says. On our bonus agreement, it says you have to be employed by the company on the bonus payout date to receive the bonus. But “employed” is defined such that giving notice means you are not employed, even if you are employed by any reasonable definition of the word. Pretty sketchy.
Marseille07
Posts: 2308
Joined: Fri Nov 06, 2020 1:41 pm

Re: RSU Vest Date

Post by Marseille07 »

If they can wait until March 22nd, why can't they wait until March 29th? You should absolutely turn in 2 weeks after the RSUs vest to avoid any nonsense.
totality
Posts: 158
Joined: Mon Aug 21, 2017 1:06 pm

Re: RSU Vest Date

Post by totality »

RSUs at my company can disappear if you give notice before the vesting date, even if you are still employed on the vesting date.

Read your RSU plan document carefully, as others have suggested.
Marseille07
Posts: 2308
Joined: Fri Nov 06, 2020 1:41 pm

Re: RSU Vest Date

Post by Marseille07 »

Bokonon wrote: Thu Jan 21, 2021 7:34 pm
AnEngineer wrote: Thu Jan 21, 2021 7:24 pm Sorry to say now, but if you wanted it worry free, you should have timed it to give two week notice after that vest.
Thanks and yeah I agree. The new company wanted me to start working for them like yesterday.. so I'm happy that they were willing to wait a couple of months as it is. The timing of this whole situation hasn't been ideal.
That's what they always tell you. If they are willing to wait till March 22nd, they can wait till March 29th. They aren't gonna turn around and cancel your offer at this stage of the game.
Jack FFR1846
Posts: 13270
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: RSU Vest Date

Post by Jack FFR1846 »

I don't know about your company. Mine uses eTrade. For RSUs that vest on the 15th, I always see them "released" and in my eTrade account at about 7pm on the 16th. If the 15th is in the middle of the weekend, and Monday is a normal business day, I'll see them at 7pm on Tuesday.

Other holding companies may have different timing.

Since you don't know....I'd give it at least a few days past the 15th.
Bogle: Smart Beta is stupid
simas
Posts: 929
Joined: Wed Apr 04, 2007 5:50 pm

Re: RSU Vest Date

Post by simas »

Bokonon wrote: Thu Jan 21, 2021 6:56 pm I'm currently working at a software company and have been here slightly less than one year. My compensation package includes RSUs that vest over a four year period, the first 25% vest after I've been with the company for a year (and some change). This initial vest date for me is March 15th.

I've recently accepted an offer at another company. They were willing to work with me on the start date so that I was able to have my current RSUs vest before leaving my current company. I start with the new company on March 22nd.
change your start date at new company to 29th and move on.
knowledge
Posts: 317
Joined: Wed Mar 02, 2011 5:44 pm

Re: RSU Vest Date

Post by knowledge »

Bokonon wrote: Thu Jan 21, 2021 7:34 pm
AnEngineer wrote: Thu Jan 21, 2021 7:24 pm Sorry to say now, but if you wanted it worry free, you should have timed it to give two week notice after that vest.
Thanks and yeah I agree. The new company wanted me to start working for them like yesterday.. so I'm happy that they were willing to wait a couple of months as it is. The timing of this whole situation hasn't been ideal.
If they really need you to start earlier, you can make it clear that you're willing to forfeit your upcoming RSUs if they make you whole for it. As a sign on, upfront - not tacked onto another 4 year vest.
User avatar
Tamarind
Posts: 2432
Joined: Mon Nov 02, 2015 2:38 pm

Re: RSU Vest Date

Post by Tamarind »

OP, I was in your shoes last time I changed jobs.

I negotiated my start date to get though vest day. I also negotiated a signing bonus with the new job equal to the amount of RSUs I had vesting, so I would be made whole if I got let go early.

Then I gave 3 weeks notice, and my boss worked with me so I could stay through vesting day. I got the RSUs and the signing bonus, too.

You may not be able to change the outcome as you've already set the conditions on the new job.

It's the right thing to do to give 2 weeks notice, but they can't stop you from giving less if you conclude it's worth it What they can do is penalize you, so make sure you've read your RSU agreement and any other agreements. It's pretty common, f.ex, to not pay out your accrued PTO if you give less than two weeks notice. Take the amount into account and be absolutely certain you won't forfeit the RSUs by giving short notice.
User avatar
codoriti
Posts: 45
Joined: Thu Apr 30, 2020 2:00 pm

Re: RSU Vest Date

Post by codoriti »

The two weeks notice is just a courtesy. You are most likely an at-will employee, which means neither you nor the company has to give notice prior to terminating your employment. But, like it was said in this thread the best thing would probably be to move your start date a week for a smooth transition. No need to burn any bridges.
AnEngineer
Posts: 341
Joined: Sat Jun 27, 2020 4:05 pm

Re: RSU Vest Date

Post by AnEngineer »

Tamarind wrote: Fri Jan 22, 2021 2:46 am ...It's pretty common, f.ex, to not pay out your accrued PTO if you give less than two weeks notice. Take the amount into account and be absolutely certain you won't forfeit the RSUs by giving short notice.
In some states that is not legal. Instead, PTO must be paid out.
simas
Posts: 929
Joined: Wed Apr 04, 2007 5:50 pm

Re: RSU Vest Date

Post by simas »

Tamarind wrote: Fri Jan 22, 2021 2:46 am OP, I was in your shoes last time I changed jobs.

I negotiated my start date to get though vest day. I also negotiated a signing bonus with the new job equal to the amount of RSUs I had vesting, so I would be made whole if I got let go early.

Then I gave 3 weeks notice, and my boss worked with me so I could stay through vesting day. I got the RSUs and the signing bonus, too.

You may not be able to change the outcome as you've already set the conditions on the new job.

It's the right thing to do to give 2 weeks notice, but they can't stop you from giving less if you conclude it's worth it What they can do is penalize you, so make sure you've read your RSU agreement and any other agreements. It's pretty common, f.ex, to not pay out your accrued PTO if you give less than two weeks notice. Take the amount into account and be absolutely certain you won't forfeit the RSUs by giving short notice.
Yes, typically this is how it works.

Dear New Company, I love you, love your team, and love the opportunity to come join you. However, there are specific timing restrictions that have monetary impact as X, Y, Z. We (always a "we" right?) can either
a. adjust the start date to ... (in your case March 29th )
b. update the offer as follows ... (sign on bonus equivalent to RSU value ,etc). In this case I think we can start start date to be within two weeks of offer acceptance.

Basically , make me whole or wait for me, choice is yours.
very standard transaction and message.
User avatar
Tamarind
Posts: 2432
Joined: Mon Nov 02, 2015 2:38 pm

Re: RSU Vest Date

Post by Tamarind »

AnEngineer wrote: Fri Jan 22, 2021 7:34 am
Tamarind wrote: Fri Jan 22, 2021 2:46 am ...It's pretty common, f.ex, to not pay out your accrued PTO if you give less than two weeks notice. Take the amount into account and be absolutely certain you won't forfeit the RSUs by giving short notice.
In some states that is not legal. Instead, PTO must be paid out.
I wish that were all of them but it's not even most of them.
Topic Author
Bokonon
Posts: 4
Joined: Fri Dec 11, 2020 3:37 pm

Re: RSU Vest Date

Post by Bokonon »

Late update here - I was able to work with my new employer to push the start date out to two weeks after my RSU vest. Thanks to everyone who gave advice.
bmelikia
Posts: 651
Joined: Mon Jun 15, 2009 9:23 pm

Re: RSU Vest Date

Post by bmelikia »

Bokonon wrote: Thu Jan 21, 2021 7:15 pm
rebellovw wrote: Thu Jan 21, 2021 7:04 pm I know my RSU's show the date that they will land in my fidelity account - so I'd hold off and wait until you have them in your account - then give notice - especially if they are valuable. Also - it is usually a two week notice one gives.
I'm aware that it's normally two weeks notice. However if I put in two weeks notice on the 8th and they decide to terminate me that day instead of letting me work through the rest of the two weeks then I'm screwed.
I would totally wait - I put in a "one month notice" to be courteous on a Wednesday and my company was ready to have my last day be that Friday - 2 days later.

FYI
"I would rather die with money, than live without it...." - Bogleheads member Ron | | "The greatest enemy of a good plan, is the dream of a perfect plan." | -Bogle
bmelikia
Posts: 651
Joined: Mon Jun 15, 2009 9:23 pm

Re: RSU Vest Date

Post by bmelikia »

Bokonon wrote: Tue Feb 23, 2021 12:12 pm Late update here - I was able to work with my new employer to push the start date out to two weeks after my RSU vest. Thanks to everyone who gave advice.
Just saw this! Awesome!!
"I would rather die with money, than live without it...." - Bogleheads member Ron | | "The greatest enemy of a good plan, is the dream of a perfect plan." | -Bogle
Post Reply