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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-
Cheers.
So some of the snippets I've pieced together are that it's a three year vesting period but didn't know if this was standard. There appear to be two types of shares (A and B) and a certain percentage can go through as PAYE but that's capped at something like £10K PA. Anything over that has to be declared through a separate tax return.
I've got a meeting booked with an IFA who has some accounting background so hopefully he can advise if any can be diverted to her pension scheme but because the amount in question is quite large I'm leaning towards swallow the tax and lock into long term savings plans whilst maxing out yearly ISA's. I'm aware that it just takes slipping back into a covid lockdown to wipe 50% off the current cash out value.
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.