Stock Vesting : How does it work? cash or stocks?

Amazon
TechSavvvy

Go to company page Amazon

TechSavvvy
Apr 15, 2018 5 Comments

I have 50 total shares and they are vesting in June; I have not submitted W9 to Morgan Stanley yet.

I have 2 stocks vesting coming June. Let's say stock price is $1500. How does the vesting calculation work? What is beneficial cash or shares? If cash how much will I have to credit on MS account and if shares how much will be deducted?

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TOP 5 Comments
  • Not sure I understand but if you meant you have 2 shares vesting in June it's the same as receiving 3k in salary. You will lose about half in taxes and the balance is yours to sell or hold.
    Apr 15, 2018 2
    • Amazon
      TechSavvvy

      Go to company page Amazon

      TechSavvvy
      OP
      If cash how much percentage will I have to pay and if stocks how many will be deducted?
      Apr 15, 2018
    • It's all taxable income that will appear on your w2. The effective tax rate depends on your situation as does withholding. A rough estimate assuming you are in wa is that you get to keep about 60% of earned income.
      Apr 15, 2018
  • Amazon / Mgmt
    BakBown

    Go to company page Amazon Mgmt

    BakBown
    If you choose “sell to cover taxes” then on the vest date MS will sell 1 share and send about $750 to the IRS as a tax payment. You will then have 1 remaining share in your MS account plus $750 cash.

    If you choose “sell all” then in the vest date MS will sell both shares and send you about $2,250 and the IRS the other $750 as a tax payment.

    Also, you don’t have “2 stocks” vesting in June. The correct terminology is “2 shares”.
    Apr 16, 2018 1