CoachA restricted stock unit (RSU) is a promise to deliver one share of the employer’s stock, or its cash value, when the unit vests, subject to conditions such as continued employment. Forfeiture is the loss of unvested awards, usually on leaving the firm voluntarily or on dismissal for cause. A good-leaver provision is a term of an award that lets some leavers, typically on retirement, death, disability or redundancy, keep unvested awards, which then vest on the original schedule or at once.
in_pay.bank_unvested and forfeit_by_year.Exemples
Example 13.3 (The handcuff)
The chapter’s illustrative bank offer defers 40% of each award into the firm’s stock, vesting in equal tranches over four years. For someone who stays, the unvested balance at grant value grows to about $90 000 at the end of the first year, $158 000 after two, $203 000 after three and levels off near $226 000 from the fourth, when each year’s new deferral is matched by vesting (Figure 13.1). Leaving at the end of year two forfeits a present value of about $129 000; at the end of year four, $170 000.