LTI on layoffs

[anonymous]

Can anyone tell me how the company handles LTI during layoffs? Compensation packages seem much less competitive if LTI is lost during layoffs and since the organization is constantly firing people.

 

[anonymous]

It’s prorated. So if it takes 36 months to vest, you divide the number of months you’ve had the invested award and divide by 36 and that’s your share they “vest” upon separation. Hope that helps.

 

[anonymous]

*unvested award (‘invested’ was the spellcheckers fault).

 

[anonymous]

It’s prorated. So if it takes 36 months to vest, you divide the number of months you’ve had the invested award and divide by 36 and that’s your share they “vest” upon separation. Hope that helps.

Thanks! That makes me a bit less nervous. I thought maybe it was a lose it all type of thing.

 

[anonymous]

Is there a specific month when LTI vests?

know it’s a 3 year vesting period, but does that mean if it’s awarded in March 2023, then it’s fully vested in March of 2026?

 

[anonymous]

Is there a specific month when LTI vests?

know it’s a 3 year vesting period, but does that mean if it’s awarded in March 2023, then it’s fully vested in March of 2026?

yes, that is the protocol for awards granted in 2023 and earlier. But for awards granted in 2024 and beyond, you well vest 1/3 per year for 3 years rather than 100% at year 3.

for the OP, there is a policy on LTI during layoffs. You can find it at Resources4Me>Compensation>LTI Plan. It’s called “2023 Treatment of Equity at Separation” and goes over all the scenarios.