If a vesting date is soon enough, some employers will push out a candidate’s start date until after the candidate’s vesting event has passed. In these scenarios, employers may increase the base salary, offer a signing bonus or bump the stock grant (likely one or both of the latter two) in order to land the candidate and/or secure an earlier start date. If a candidate’s current RSU grant is substantial and the new offer is, overall, of significantly less value.If a candidate has a set of RSUs that are on the verge of vesting at her/his current company (i.e. With this said, there are circumstances where a candidate’s RSU situation may influence an employer to sweeten their deal. In addition, it is more than likely that the employer has offered the candidate its own stock grant as part of its offer, which serves to cover…to varying extents…the stock that is being left behind. So there’s nothing in the here and now to give up. They are unvested and have not been earned. Generally speaking, it is not common for employers to “buy out” a candidate’s unvested RSUs at his/her current employer…because employers do not view these RSUs as anything to buy out. So is it common for employers to acquiesce and buy out a candidate’s unvested RSUs as part of their compensation offer? And as a result, a growing number are asking employers to bridge the gap. Granted, those grants are still unvested, meaning that they are currently of no value to the candidate – but a greater number of candidates are increasingly considering this sacrifice of future value in their decision to depart. And those with RSUs tend to wince a bit harder at the thought of leaving that upside behind. When a professional leaves an organization, it often means that s/he is leaving behind unvested stock. Most of the private/emerging growth companies today remain in the options boat, but the tide is slowing starting to change here as well. The vast majority of public companies have fully migrated to RSUs, some offer a mix of RSUs and options and a much smaller number are still in the pure option grant category. This shift has enabled employers to be more competitive when trying to land the very best talent. But over the years, the nature of this grant has been shifting from a pure options grant to restricted stock units or “RSUs” (a company’s commitment to give the value of a specific number of its shares in the future for which payment is not typically required). Historically, the stock has been granted in the form of stock options(the right to buy a company’s stock at some future date at a price established now). When a lawyer moves in house, s/he is often offered stock in the organization as part of an overall compensation package.
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