Hi Guys, Scenario: Say i joined a new company pre IPO and got alloted some RSU s which will be vesting over 4 years... Now I moved out after 4 years, after all initial grant got vested, but company is still not public yet... Question: 1) Are my stocks valid if the company get public, post my tenure over there? 2) Will there be any expiry date for the stocks if company didnt go public any time sooner post my tenure? Note: I dont have any offer, this is just a general question..... TC : 38Lakh YOE: 5
IANAL but... RSUs are interesting. They aren't taxed since they are considered intangible assets. Because of that in they must have some expiry date, usually 5 to 7 years from when they were issued. Most companies willingly reissue RSUs at full value in the off chance it hasn't IPO'd, folded or been acquired in that time since not doing so is effectively reputation suicide to getting good talent but it is a risk. It's far more likely that the RSUs will amount to nothing from the company falling apart, followed closely by the company just doing alright your dip in comp making it be a net loss compared to public companies. You can get lucky, I feel pretty damn lucky with my company getting acquired under good conditions. This is pretty easily googleable by the way: https://employeestockoptions.com/pros-and-cons-of-restricted-stock-units-rsus/
Did you read your grant agreement? That would answer all of those...
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Nope! Expiry is for options to exercise them. For RSUs once you vest, you just get them. Like normal shares
Thanks for the share
RSUs will often have an expiry if there’s a double-trigger.