My last day in my company would be 30th september. However, I have been granted restricted stock units, 1/3rd of which are vesting on 12th september.

If I sell them right after vesting , will I be able to receive the benefits of selling them in my last salary.

How can I make sure that there is not any trap or loophole that will disable my ability to sell them if I am leaving the company. Or is there nothing to worry about.

Also what will happen to my remaining unvested stocks, I know I cannot sell them since they will be vesting after I leave the company. Is there any action that I should take regarding them on merrill Lynch account.

  • It is important to clarify if this stock trades on a regular stock market. That is, has your company gone through an IPO? If this is "just" a startup, you may not be able to sell your stocks. It may also be worth specifying your tax jurisdiction; this may affect answers. – ChrisInEdmonton Aug 4 '17 at 18:07
  • @ChrisInEdmonton The company is Hewlett Packard Inc. However I work in India, office is in Bangalore. – Sumeet Aug 4 '17 at 18:09
  • @ChrisInEdmonton Therefore tax jurisdiction is India. – Sumeet Aug 4 '17 at 18:09
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    You lose any unvested stock (RSUs), but you should keep any vested stock whether or not you sell. – Kevin Aug 4 '17 at 18:22

This should all be covered in your stock grant documentation, or the employee stock program of which your grant is a part. Find those docs and it should specify how or when you can sale your shares, and how the money is paid to you. Generally, vested shares are yours until you take action. If instead you have options, then be aware these need to be exercised before they become shares. There is generally a limited time period on how long you can wait to exercise. In the US, 10 years is common.

Unvested shares will almost certainly expire upon your departure of the company. Whether your Merrill Lynch account will show this, or show them as never existing, I can't say. But either way, there is nothing you can or should do.

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