My husband is on the 4 year vesting plan. It is for a total of 220 units or 55 of each vesting year. I am a bit confused as how we should view these. We did pay the taxes on them, the company actually manages that for us, but should we cash out and diversify? These are NOT tied to retirement, they were part of his compensation package. Right now I am viewing them as part of our efund, but wasn't sure if I am missing the bigger picture when it comes to these.
are there any restrictions on selling them? DH has to hold 120% of his base in company stock before he can sell any of shares even though they are fully vested. He can only sell to pay taxes and with the permission of the CEO and heald of HR if he falls below that %
Are all of the options vested? Are they still options or do you actually own the stock now? The tax treatment on the gains is different depending on if you actually purchase the stock and hold the shares vs. if you perform a cashless exercise. When I received options I would typically cash them out rather than hold them because I didn't want to end up in an Enron situation and have the stocks tank and lose my job.
It is a public company. There are trading blackouts but aside from that, no other restrictions that I know of. Only 1/4 of them are vested now and those we own. Some were cashed out by the company to pay the taxes on them. I cant remember the exact numbers but 55 vested, but I believe he only got 40 because 15 or so were deducted to cover what the company paid for our taxes, make sense? That part confused me because I didn't expect them to do that.