One of clauses in Uber’s RSU compensation is: “If the liquidity event has not occurred prior to the 5th Anniversary of your Grant Date, the RSUs will expire and will be of no effect regardless of whether you have met the time-based condition.” Am I reading this right? Does this mean RSUs come with an expiry date of 5 years and if no liquidity event happens within those 5 years I am left with nothing? Did you guys have a similar clause in your offer?
Is this standard across companies? I was unaware of this.
How does this work? Is the grant date the vest date or the join date? Either way people who joined before 2013 are already screwed
People who joined that early didn’t get RSUs, they got options :)
What? Does that mean if there is no IPO from the date RSUs are granted, it's value is zero? This can't be true. It has massive impact on everybody's comp.
It means the shares vanish and it's an IRS rule. Doesn't stop company from re-issuing the grant and restarting the 5 year counter.
@SomeEng Is this true of all companies? Or does it depend on the company? Does the reissue of the grant at that point then depend on the performance? P.S.: I did not take this into account until now and feel a little more hesitant from signing the offer now.
5 years seems too short - usually it is 10 years or more - till the RSU time period expires.
Once RSUs are vested, it is all yours. You are free to do whatever with it - keep it or sell it when you choose. This has been my understanding so far. Are you saying we lose all of the vested stocks, if we don't sell it within 5 years?
Only for private companies it seems where you cannot sell them.
99% of the time the company will reissue the shares. But if you left your company before that then they can choose to be a dick and not reissue the shares which is why many are scared to leave before the IPO
I think Lyft rule is 7 years
Salesforce to uber is common.
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That's correct. Standard IRS rule.
So what about employees who joined Uber more than 5 years ago. Are all their RSUs worthless ?
Usually a company will re-issue the same shares after 5 years if they haven't been able to sell them if the company values its people.