Restricted stock has full value to you at vesting, regardless of whether the stock price has dropped after the grant date. This leads companies to grant fewer shares of restricted stock (or restricted stock units) than stock options. The ratio used to give a restricted stock grant an equivalent "value" to that of existing stock option grants depends on different factors. Common ratios are...
A summary of data in surveys from major consulting and research firms shows that...
For restricted stock with vesting based on the length of time you are employed (i.e. time vesting as opposed to performance vesting), your company...
With variable grant guidelines your company determines grant size according to...
It's all about what leads to vesting or share payout...
Stock-based performance plans have targets that, when reached by the end of the measurement period, trigger vesting or payout according to the structure of the plan. Various surveys show that the most common metrics are...
Stock plans can be global, and in some countries they are more popular than they are in the United States. Consulting firms and other groups have conducted surveys about the use of stock compensation in both developed and emerging economies...
With a few exceptions, the grant, vesting, or exercise of stock options, or the vesting of restricted stock, should not affect your other retirement-plan benefits. One notable exception...
Several surveys report data on vesting periods for restricted stock and RSUs at many companies. These studies find that graded vesting and cliff vesting are almost equally used. The most popular...
A post-vest holding period is a specified length of time after you receive shares from an equity grant during which the company requires you to...
Usually, if the vesting date falls on a non-business day...
Under some stock plans, if you are temporarily disabled and your employment is not terminated, you...
Retirement is a type of termination of employment...
Some companies accelerate the vesting schedule of restricted stock or RSUs if...
Successful completion of venture financing is a typical performance goal for a startup company. A public company might...
The treatment of the restricted stock (or restricted stock units) in the acquisition or merger depends on various factors. The possible treatment of your unvested shares includes...
Provisions vary according to the terms of your grant and stock plan. Trends and data show that...
Not necessarily. If an acquirer is using its stock to pay for shares of your company, then the purchase will be denominated in stock according to one of several methods...
Most stock plans do not permit this for restricted stock or stock options. Lenders would also not accept restricted stock as collateral because...
Not unilaterally. Although no law specifically addresses this question, courts have examined...
Noncompete provisions are not as common with restricted stock as they are with stock options. However, watch out for restrictive covenants in "clickwrap" agreements...
Perhaps, but this would be unwise, and the shares received at exercise or vesting may not be covered by...
Although stock ownership guidelines are more common, retention mandates and requirements for CEOs and senior executives have become popular, as shown by survey data and corporate proxy statement disclosures. Supporters of share retention rules believe they show...
Under the FBAR and FATCA rules, you may have special IRS reporting requirements if you hold assets in a bank outside the US. This FAQ explains the requirements and the severe penalties that the IRS imposes for noncompliance...
In theory, when a company pays a dividend, particularly a large special dividend, its stock value declines by...
Dividends and the shareholder voting rights that go with restricted stock do not...
Not until the restricted stock vests. Then the stock is...
You cannot be charged just for the vesting of restricted stock, as no sale of securities occurs. However...
Within two business days of any grant, you file Form 4 electronically under the SEC's Section 16 rules. However, while the filing rules for these grants are similar, there are some important differences...
Yes. Assuming the company's grant meets the rules for exemption under Section 16, the grant and vesting are not matchable...
Expensing became mandatory for calendar-year companies several years ago. Because companies take an earnings charge for the "fair value" of stock option grants on their income statements, companies have changed their grant practices by reducing the number of stock options, moving to grant more...
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Test your knowledge with our 
