Our recent blog article on the top 10 questions to ask about performance share grants received a great response. Performance share awards use restricted stock or RSUs (restricted stock units) as the underlying form of grant, with vesting based on the achievement of specified performance goals instead of time.
To complement that piece, and to help myStockOptions users and licensing clients make the most of restricted stock/RSU awards, we have compiled the top 10 questions that you need to ask about restricted stock and RSUs to fully understand your grants. The links in the questions below go to the related content at myStockOptions.com.
2. Is formal acceptance of the grant required? What happens if I don't accept the grant before vesting?
3. What is the vesting schedule?
6. When the shares vest, what account will they appear in?
7. How does the tax withholding work?
8. With RSUs, can I defer the delivery of the shares at vesting?
10. What would happen to my restricted stock in a corporate acquisition or merger?
In addition, you should understand the tax treatment, the reporting on your Form W-2 (whether for restricted stock or RSUs), and the related tax return reporting. Our Tax Center covers all tax topics involving stock compensation.
Visit myStockOptions This Week At NASPP 2018: Exhibit Hall And Financial-Planning Session
We are excited about the NASPP's annual conference, being held this week in San Diego (Sept. 25–28). As always, myStockOptions.com has its cheerful booth in the exhibit hall, where our editor-in-chief Bruce Brumberg is available as an NASPP-designated expert to answer questions on stock plan education/communications and equity comp taxation. If you are attending the conference, please stop by our exhibit booth for a chat and pick up a myStockOptions.com souvenir!
In addition, Bruce is presenting at an NASPP Power Session on Sept. 28 (Friday morning) called Financial Planning Strategies for Employees. Joining Bruce in this interactive session will be James Fucigna, a leading Wealth Management Director at Morgan Stanley.