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RSU Sell to Cover – oddity or ok?

At a particular company, when employee RSUs vest, the company automatically sells a pre-set percentage to cover the tax burden. The % is based on your location, e.g. 40% in California but 30% in a different state. Is this ok? Shouldn’t the company have to calculate how many shares must be sold on an INDIVIDUAL basis rather than per this preordained schedule based on nothing more than your geographic location? Aren’t they necessarily selling more shares than necessary for some people (depending on their individual withholding circumstances) and too few for others because they’ve chosen to be lazy rather than actually perform the calculation for every employee at vesting time?


At a particular company, when employee RSUs vest, the company automatically sells a pre-set percentage to cover the tax burden. The % is based on your location, e.g. 40% in California but 30% in a different state. Is this ok? Shouldn’t the company have to calculate how many shares must be sold on an INDIVIDUAL basis rather than per this preordained schedule based on nothing more than your geographic location? Aren’t they necessarily selling more shares than necessary for some people (depending on their individual withholding circumstances) and too few for others because they’ve chosen to be lazy rather than actually perform the calculation for every employee at vesting time?

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