PerkyNoodle
PerkyNoodle

What happens to RSUs after mass layoffs?

Just wondering, say if you join a company and they grant you $40,000 dollars worth of RSUs. These are unvested and 6 months later they do mass layoff and your role is eliminated. What happens to those RSUs? Do they provide accelerated vesting and give you those shares or will it expire?

Appreciate your inputs regarding this.

18mo ago
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WigglyRaccoon
WigglyRaccoon
Google18mo

No one has done accelerated vesting as far I know for anyone below L8 or Senior Director.

If not vested then they move back to org, obviously saving on those RSUs is one of the reason for layoffs.

JazzyPenguin
JazzyPenguin

It will be vested based on the clause mentioned on the RSU agreement or they should give you a revised contract. If there is no clause, there is no accelerated vesting.

MagicalJellybean
MagicalJellybean

Have heard of a couple of companies who provided accelerated vesting (but only by a small margin e.g, 3 months). This was for an unlisted company’s stock options though and not for RSUs. For RSUs companies will follow the agreement that you signed on joining.

JumpyHamster
JumpyHamster

Yeah, hence they usually layoff just before vesting date.

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