I received some "Restricted Share Units" from (RSU's) my company this month.
The RSU's vest in 5 equal tranches over 5 years provided that I'm still with
the company. If I leave the company then I lose any unvested allocation.
Tax is effectively paid from the shares themselves; so if I'm allocated a
*total* of 1000 shares I only receive 600 (my marginal tax rate is 40%) - so
no problems there. However, NI is paid out of my actual salary based on the
total value of the shares at the time they were allocated - this means that
the effect of this incentive is to signiciantly reduce this month's take
home pay. Is this the way these things are normaly dealt with?
Of course, if I stay with the company and the company's share price doesn't
bomb, then I'll benefit from the value of the vested shares. But what if I
leave the company or the value of the vested shares is much less than the
value on which the NI calculation was based - can I reclaim the NI
Thanks for any advice.
- posted 8 years ago