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I realize that stock splits theoretically don't change anything for shareholders, but is that also true of RSU holders? Is an RSU a share held in escrow (and th
by giaour 5y ago
I realize that stock splits theoretically don't change anything for shareholders, but is that also true of RSU holders? Is an RSU a share held in escrow (and thus the number of shares should go from 1 to 20 for each RSU), or is an RSU a promise to give a single share to the holder at a future date?
- floatinglotus 5y agoYour RSUs should also be split.
- syspec 5y agoRSU shares are sort of "parked" and have some value total X - let's say 100k. When a split happens the parked shares also split and now there are more shares parked but still at at value of 100k.
- giaour 5y agoThat makes sense. Are RSUs parked in a legal sense (i.e., are they actually held in escrow from grant to vest) or is this just common practice?
- gowld 5y agoAre unvested RSU grants irrevocable in general?
- giaour 5y agoI don't think so, since it's technically future income. If you quit or lose your job, unvested RSUs are revoked, and there are probably other circumstances on the employer's part that could have a similar effect. I once worked at a small (non-IPO'd) business that was acquired by a large multinational, and one of the first things the multinational did was to cancel all unvested options.
- mercutio2 5y agoWhoops, I read your question as being about the value of buybacks. Yes, RSUs are updated in response to a stock split the same way already issued existing stock is treated.
- myroon5 5y agoOne consideration is that Amazon rounds RSU vests down to the nearest share, leading to larger and larger rounding over time (without splits). Splitting reduces RSU vest rounding, which could now mean an extra ~couple thousand dollars worth per RSU vest