A number of RSUs vested for me on the first of this year, but weren't released until mid-March due to an unreleased 10k. During this period, I switched jobs mid-February, and I was terminated at the moment I gave notice.
We are now in the process of exercising those RSUs, however somethings have apparently changed, since I am no longer an employee. Previously, when exercising RSUs, I was given several options. I could:
- Issue a separate payment to the company to cover taxes.
- Have the amount withheld from the next paycheck from date issued.
- Have the shares issued to an account, and some sold and the applicable amount remitted to the company.
- Have the company withhold shares from the vested amount to cover the required taxes.
However, now, I am being only offered the option to issue a separate payment (or, at least, being requested to issue a separate payment). I have a couple questions that accompany this.
- Doesn't option 1 create more work?
- Should I still be allowed the other options, given the original signed agreement? The only clause involving the separation of the employee and employer was that shares not vested were forfeit, which was pretty straight forward. These vested while I was an employee, but are being issued while I am not.
- Are there, if any, benefits to simply issuing separate payments to cover taxes on RSUs?