Accelerated vesting when laid off?

PayPal larper7206
7d 25 Comments

Just checking in to see how common it is that companies accelerate your vesting when you are laid off? Is this widespread? I'm sure there is a time component (like probably not 2 months after the last vest, but probably for sure 2 months before the next one).

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TOP 25 Comments
  • Walmart pingpongl4
    Why would they want you to vest? They're laying you off to save money
    7d 0
  • PayPal nodejsdev
    Op I heard there will be lay off in our company this month. Any thoughts?
    6d 8
    • PayPal / Mktg
      MLewinsky

      PayPal Mktg

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      MLewinskymore
      Yes I’m sure. This is part of Allison’s cost cutting. She is trying to lower the costs for marketing and will be running a very lean team - which is great for the people who will not be cut, but they’ll get a lot more on their plate.

      Fingers crossed for everyone. I would take a volunteer lay-off if they offered it.
      6d
    • PayPal nodejsdev
      MLewinsky- messaged you. Please check inbox!
      6d
    • PayPal / Mktg
      MLewinsky

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      MLewinskymore
      Checking now
      6d
    • PayPal larper7206
      OP
      Agree with MLewinsky. Finance will be very limited with perhaps a few more to come later. Missing numbers had real consequences. Hope everyone is okay. Please reach out for networking if you get clipped.
      6d
    • PayPal wknu08
      Xyfp4t : it will be the third for this year if it happens, but heard it's most likely to come.
      5d
  • Qualcomm lo_ol
    Accelerated vesting generally happens when a company is acquired or merge with another. In layoff the employees lose their RSUs but get some kind of severance.
    7d 1
  • Compass LInR08
    Typically accelerates to zero
    7d 0
  • PayPal larper7206
    OP
    This definitely happens, I just wonder how common it is. I guess the answer is not very common. For companies on an annual vest schedule they would do this to not be dickish and lay people off right before they vest.
    7d 2
    • PayPal pypl49wez
      VP level
      6d
    • PayPal wknu08
      It happened for BR. But guess it's very uncommon thing.

      Usually they give a 3 month pay when laying off.
      Might as well consider ur RSU's if it's vesting within those 3 months. Not sure, but that could be a possibility!
      5d
  • Amazon Dr. Jones
    I’ve never even heard about this type of thing.
    7d 0
  • PayPal jumpprep
    OP, move this to PayPal channel on blind for more insights from insiders
    6d 2
    • Compass LInR08
      Wtf? Why? We’re all anonymous and besides we’re family.
      6d
    • PayPal jumpprep
      Yeah we are gonna be meeting over thanksgiving dinner this year! 😂
      6d
  • New IWDP33
    They have to make you 100% vested in your retirement accounts (401k and pension) if they lay off more than 20% of the work force. This is the law under ERISA, it’s called a partial plan termination.

    They can’t change the vesting on a per person basis for these types of plans outside of this scenario. They can change it for plans that are considered non-qualified.
    7d 2
    • PayPal larper7206
      OP
      Makes sense
      7d
    • New IWDP33
      This is what I do for a living. You may get an extra year when you leave a company because you have already hit your 1000 hours worked and their document does require a consecutive 12 months, this is common.
      7d
  • Never heard of that, but if a company was offering buyouts I could see this being part of the package.
    7d 0
  • Google vkg38472
    Maybe if you are an executive
    7d 0