Redundancy & Share Awards

Tim1000

Hello All,
Looking for some advise please.
I have just been notified that my position within a company is now at threat of redundancy. All the basics I understand. However last year I was awarded a chairman's share award and given 600 shares but with only with an electronic letter, these shares would vest in 3 years time. I have not been given any details of the share plan. HR have advised that I will only be entitled to 33% of this value as the shares have another 2 years to vest. Is this correct? Surely if they are making me redundant and issued the shares last year as a retainer am I not entitled to 100% of today's equivalent value? Thanks You Tim.:o

ratechaser

At the risk of stating the obvious, it depends on the terms of the scheme under which the shares were granted. If those terms say that you forfeit if you are not employed on future vesting dates, then so be it.

Admittedly, IMO this is a bit harsh in the case of redundancy - my own old employers scheme would only enforce forfeiture if you were sacked for good reason or if you resigned. If it was involuntary without cause (such as redundancy) then you would retain the future vesting of shares.

I'm assuming at least that you were not taxed on these 600 shares when the initial grant was made?

TadleyBaggie

One of my previous companies stated that when made redundant any share/stock awards were immediately fully vested. However I suspect that was them just being generous (as was their redundancy package which I gladly took).