Need help with offer letter
Received an offer from Akamai, and need some info regarding: 1) Performance Bonus: The HR told the bonus would be in the form of shares at the end of the appraisal cycle. Q) Are the share units received at the end of the appraisal cycle vested ? Can they be sold off immediately on the date of receiving itself ? 2) The RSUs promised in the offer letter. Here is the excerpt: "You will be eligible to receive Restricted Stock Units (RSU) worth $X (vesting over a period of 4 years) subject to the approval of our Board of Directors; you will receive RSU’s under the provisions of Akamai’s RSU Program. New hire grants are approved by the CEO on a quarterly basis, 2 days after earnings release. First vesting for new hire grants, occur on the anniversary of the grant date." Q) what does this mean ? Will I get the RSUs immediately as soon as I join ? Or i may not ? What does eligibility mean here ? #engineering #software #swe #offer
Bonuses are in the form of RSUs, existing employees were vested last month in March. Not sure how they are doing this for new hires…. Maybe they use your hire date or something similar. RSUs are for employees with a senior title and above. All that says is that you are eligible to earn RSUs. If they gave you a dollar value, you will have that % after one year, then quarterly after that. Pretty standard I think.
Thanks for replying. Can you please help me understand a bit further.. About the Bonus, so they aren't already vested shares which can be immediately sold off in the market on the day they are alloted as bonus? Also, of they use the hire date of the new hire, does it mean the new hires won't get the bonus when regular employees get at the end of the appraisal cycle ? About RSUs, "eligible" means is it not guaranteed for the new hire ? Or they are for sure going to give me the promised worth (as mentioned in USD in the offer letter) of RSUs according to the regular vesting cycle ?
They are fully vested in March 2024 at which point you can keep or sell all. Not sure how the bonuses work for new hires in terms of vesting date, check with HR on that one. Correct, eligible doesn’t not guarantee. BUT if they give you a dollar amount in the offer letter that tells me that this is part of your hiring package.