// Equity
What changes when equity meets a career move.
A career move can change what vests, what is forfeited, what becomes taxable, and how much of your money remains tied to one company. The award documents come first.
01
Build the grant inventory
The grant agreement, equity plan, separation agreement, and company portal may answer different parts of the same question. Record each grant, its award type, vested amount, next vest date, expiration date, and what employment ending does to it.
Do not assume that one grant follows the same rules as another. Acquisitions, leaves, retirement eligibility, and negotiated separation terms can change the answer.
02
Separate vesting from tax timing
Restricted stock units, stock options, and employee stock purchase plan shares do not follow the same tax mechanics. Equity compensation such as RSUs is generally treated as wages subject to federal income tax withholding, but the award terms control when an amount is earned or delivered.
Ask payroll what will appear on the final pay statements and Form W 2. Ask a CPA how the income, withholding, and any later sale fit together.
03
Compare old equity with the new offer
A new offer may look larger while replacing equity that would have vested soon. Compare forfeited value, the new grant schedule, refresh grants, liquidity, exercise costs, and the risk that either company changes in value.
Use several share price assumptions. A single current price can make an uncertain comparison look more precise than it is.
04
See the concentration clearly
Employment income, future savings, and an investment position can all depend on the same company. That concentration deserves a deliberate review, even when the company remains attractive.
Diversification can reduce company specific risk, but it does not remove investment risk or guarantee a result.
05
Questions to verify
The goal is a clean fact pattern that your plan administrator, CPA, attorney, and advisor can each address within the right boundary.
- What vested through the final employment date?
- What is forfeited or accelerated?
- Which dates are controlled by the plan or agreement?
- What will payroll treat as wages?
- What is the basis for each share lot?
- How much of total income and net worth depends on one company?
Primary sources