Question regarding unvested megacorp stock shares

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Townline Lake
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Question regarding unvested megacorp stock shares

Post by Townline Lake » Tue Dec 26, 2017 2:53 pm

I have unvested mega Corp stock shares that vest on a three year cycle, so three outstanding grants at any particular time and vest each March 1st at which time the shares get deposited in my brokerage account less amount taken out for taxes.

Do you consider these unvested shares as part of your asset allocation before they vest or wait until they vest and factor them in at that time.

GmanJeff
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Re: Question regarding unvested megacorp stock shares

Post by GmanJeff » Tue Dec 26, 2017 4:41 pm

You don't own them until they vest, which means you may never own them - for example, you may separate from employment for some reason before they vest. Furthermore, the value of the shares will likely fluctuate until the vesting date, making it difficult to discern their impact on your asset allocation until they do vest and have a specific realized value. Consequently, ignoring them until they vest is probably the right perspective. That's what I do - once the shares vest, I consider them to be part of my portfolio and as included in my overall asset allocation but until that time they are merely a potential asset, not anything I can count on.

Wagnerjb
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Re: Question regarding unvested megacorp stock shares

Post by Wagnerjb » Tue Dec 26, 2017 7:09 pm

Personally, I considered them in my AA even though they weren't vested. Just my opinion.
Andy

Jack FFR1846
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Re: Question regarding unvested megacorp stock shares

Post by Jack FFR1846 » Tue Dec 26, 2017 7:14 pm

I have RSUs that vest over a 5 year period with new ones added every quarter. I consider zero of them to be of any value whatsoever. My eTrade account even shows me "potential value" of what's been granted. I just look and ignore it because it's just vapor at the moment.
Bogle: Smart Beta is stupid

ThePrince
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Re: Question regarding unvested megacorp stock shares

Post by ThePrince » Tue Dec 26, 2017 7:20 pm

Jack FFR1846 wrote:
Tue Dec 26, 2017 7:14 pm
I have RSUs that vest over a 5 year period with new ones added every quarter. I consider zero of them to be of any value whatsoever. My eTrade account even shows me "potential value" of what's been granted. I just look and ignore it because it's just vapor at the moment.
+1

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