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Restricted Stocks Vesting during notice period - Advise Needed

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RZRBLD
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Restricted Stocks Vesting during notice period - Advise Needed

Postby RZRBLD » Sun, 06 Sep 2015 5:20 pm

Hi,

I'm currently on an EP and have received a job offer from another company (not a competitor). They will be applying for a new EP shortly. They want me to start 1 of Nov. I have a 4 week notice with my current employer. What complicates the matter is that I have Restricted Stock units (RSUs) vesting on the 15th of October. The amount is quite significant for me to risk losing. I have worked hard to earn them and would hate to forfeit them since I'm so close the the vesting date. I need some advise on how I should approach my resignation:

Option 1 - I let my employer know that I'm quitting around 16th September and continue working during my 4 week notice period take my RSUs and leave. The risk is that the employer may chose to terminate my employment immediate and walk me out. I know they do this if you join a competitor and pay a month salary. Although I'm not going a competitor they might chose to walk me out..Are they legally obligated to let my RSUs vest as it's still within my notice period and I will to serve my notice?

Option 2 - I let my employer know on 15th Oct once my RSUs are secured. Problem with this is that if I have to serve a 4 week notice period, I won't be able to join my new job on 1st Nov.

Option 3 - I let my employer know on 15th Oct once my RSUs are secured. I just mention that I am considering couple options one of them is a direct competitor and I get walked out. (they will walk me out if it's direct competitor) I then join my new employer on 1 Nov.

Any suggestions on what's the best approach in this situation.

bro75
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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby bro75 » Sun, 06 Sep 2015 7:17 pm

There is another option, if the RSU is really big, then you can file your resignation on Oct 16 with a two week notice. You may need to pay a sum in lieu of notice (2 weeks pay equivalent depending on company policy).

PNGMK
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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby PNGMK » Sun, 06 Sep 2015 7:59 pm

If you're employer is like mine they will march you out on garden leave as soon as you resign and it won't matter if you resign on Oct 16th. Are you sure they won't do that? Alternatively give up the notice period for immediate termination if possible as Bro alluded to.
I have gay, black, Asian friends and then JR8.

RZRBLD
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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby RZRBLD » Sun, 06 Sep 2015 8:21 pm

Thanks guys for the awesome advise. One more question..My company walks out people for sure if they join a competitor ....I'm not joining a direct competitor but can I be a little vague about where I'm headed or may be even say that I'm considering a couple options including a competitor and hope that I get walked out? Any harm doing this?

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JR8
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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby JR8 » Mon, 07 Sep 2015 2:09 am

I'd have thought the question is covered in the RSU FAQ. For example at my last employer the first rung RSUs didn't vest for 2 years. Some RSU's at higher ranks ('LTICP - Long Term Incentive Compensation Plan') had vesting periods as long as ten years. Given a) the proportion of gross pay that is received in such instruments, and b) the quick turn-over of many staff, it is hard to believe the rights to unvested RSUs received could lapse on departure.

Put another way a $ of RSU stock was granted in lieu of a circa $1 cash*. If the risk was material that you'd lose all your unvested RSUs no one would have wanted them. People didn't really like them of course, since cash is king, but paying 100% cash bonuses across the board wouldn't be great for the corporate balance sheet.

* In actual fact the RSUs were issued at approx 85% of the current stock value. Probably intended as something of a 'double bonus' for the recipient.

So, check the scheme FAQ it surely must be addressed there.
'Do it or do not do it: You will regret both' - Kierkegaard

RZRBLD
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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby RZRBLD » Mon, 07 Sep 2015 7:10 am

Great points..I've read the FAQ and it has says nothing about whether the RSUs would lapse upon departure even if it's within the notice period. Logically it makes sense that it shouldn't since they vest well within my notice period. My concern is that if they walk me out as soon a resign does it mean I'm terminated immediately and hence lose my RSU. Anyways to play it safe I will resign the day my RSUs vest. Back to my earlier question... Can I be vague about where I'm headed or even say that I'm evaluating couple options including a direct competitor and I get walked out. I need to start my new job and hence I cannot serve 4 weeks.

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Re: Restricted Stocks Vesting during notice period - Advise Needed

Postby PNGMK » Mon, 07 Sep 2015 8:01 am

I don't believe you need to tell your old employer anything enough about your new employer. Let them conclude what they may.
I have gay, black, Asian friends and then JR8.


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