[quote=desmond]flu,
saw this on a fb board, is it correct?
“All FB employees that had vested RSUs will have to pay taxes on a $38 dollar gain based on the IPO price. They will be taxed at ordinary income levels, which means 45% (state and federal)
Stock price below $19 means that they have to sell ALL their shares to pay the taxes. That is mandatory.
On November 2012, when lockout is removed, you will have employees owing more in taxes than their shares are worth. FB will have to compensate them in some way. This will get very ugly”[/quote]
It’s unlikely to be accurate. RSU’s are typically not taxable to employees until fully vested. As a practical matter, vesting would require the release of the rights to sell or control the stock, which would be the november date. So they’ll be taxable to the employees at the FMV as of the Nov. date. (this is NOT the same as stock options, which may have a value at date of grant.)
