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There’s no set vesting period as far as I know, it’s down to the individual schemes.
Is there any detail on tax arrangements for the scheme? I can’t remember the technical terms, but some schemes will only release the share options minus the calculated tax due, others out the onus on the individual to pay the tax.
andyp
@inchpincher
So I'm tasked with sorting out my wife's 'Stock Incentive Plan' because she's just reached her 10 year milestone at her company and been nudged that the share options will begin to expire if they haven't been cashed in. We never understood how they worked so kind've stuck our heads in the sand, first world problems etc
Her employment contract is scant on detail and the Merrill Lynch app doesn't go into the nuts and bolts of whether these are RSU's or stock options... but does the following sound right...?
You get given some RSU's, after a vesting period (3 years?) they mature and you can sell some (all?) and the 'cash value' is calculated as the increase in share price over the period since they were bestowed....?
Internet advice that I've read seems to be cash them out ASAP unless you're seriously invested in the company and want to play the market game. Although it seems she's played a blinder as the share price has tripled in the last decade.