These days, many tech companies use restricted stock units (RSUs) to compensate their employees. This form of compensation can present meaningful upside over traditional cash, if the company’s underlying stock performs well. 

In its efforts to motivate employees to do their best work, Meta makes a point of rewarding them financially. Part of those rewards come in the form of RSUs, which have the added perk of encouraging workers to invest in Meta. 

How Many RSUs Do Meta (Facebook) Employees Get?

When you first receive an offer letter from Meta, you’ll be able to find the amount of RSUs you’ll get as an employee. That amount is expressed as a Meta equity grant and denominated in dollars. When you formally become a Meta employee, that grant will get converted into RSUs based on its dollar amount. To figure out exactly how many RSUs you’ll get when you sign up to work for Meta, follow this simple formula: 

The dollar value of your grant/Average closing stock price for Meta over the month before your first day

If you get a fractional share by following this formula, round up to the nearest whole share. Follow this example for a look at how this all works in practice: let’s assume you started working at Meta on July 1, and their average stock price in June was $175. Now, say you received a $2,000 grant. With that information, you can complete the formula:

$2,000/$175 = 11.42

Since that’s a fractional result, you’ll round up for a total of 12 shares.

When Do the RSUs Vest?

Meta’s RSU vesting schedule is interesting, as it’s not a single one-size-fits-all schedule. Instead, the company has three separate schedules: Vesting Schedule A, B, and C. 

All three vesting schedules start the same way: your first vesting date will fall on the first Meta vesting date after you get hired. Meta’s vesting dates fall on February 15, May 15, August 15, and November 15. From that point on, your vests will follow one of these three paths:

• If you’re on Vesting Schedule A, you’ll continue to earn 1/16th of your RSUs each quarter over the next four years.

• Vesting Schedule B is a bit more complicated - you’ll get 1/12th of your RSUs in the first quarter, 1/16th in the next two quarters, and 2/48th in the final quarter.

• Finally, on Vesting Schedule C, you’ll get 5/48th of your RSUs in the first quarter. Then, you’ll receive 1/16th in the following quarters (except for the final quarter, where you’ll get 1/48th).

What Can Be Done with RSUs After They Vest?

No matter what vesting schedule you’re on, you should know what you want to do with your stocks when they vest. Of course, there are countless options for investing. Some great choices include:

• Preparing for the worst. It’s impossible to predict your financial future with 100% accuracy. If you don’t already have an emergency fund, cash from RSUs can make it easy to get started.

• Save for a home purchase. Buying a home can be a great financial decision, and meaningful RSU vests can help accumulate the necessary down payment. 

• Putting money into a 529 account. If you have kids, there’s no better time to prepare for their higher education than now–and a 529 account can really help.

• Shoring up your 401(k). Meta provides matching retirement funds to employees. If you have extra money from vested stocks and haven’t hit your contribution limit, this is a great way to max out your 401(k).

Leveraging RSUs to Their Full Potential

By putting your Meta (Facebook) RSUs to good use, you’ll get a great head-start on preparing for your financial future. But you shouldn’t assume this process will be an easy one. No matter how many RSUs you get as a Meta employee, if you don’t have a reliable plan for what to do with the money you’ll earn, you could still find yourself in trouble.

To truly seize this opportunity, it pays to work with financial experts. Unfortunately, picking a good financial advisor can be nearly as complicated as making financial plans on your own. These days, all too many advisors rely on impressive-sounding buzzwords instead of sharing solid advice that’s easy for anyone to understand.

With that said, there is a way to avoid both issues simultaneously–Consilio Wealth Advisors. 

Consilio Wealth Advisors specializes in working with tech professionals like you. Our team helps clients win the tax game, optimize RSU income, and put a plan in place to make work optional. Along the way, the Consilio team will provide financial guidance that you won’t need a dictionary to decipher. 

Disclosures: 

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

Consilio Wealth Advisors is not affiliated with Meta/Facebook, and any commentary about their stock should not be construed as a solicitation or recommendation on the security. 

Consilio Wealth Advisors, LLC (“CWA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where CWA and its representatives are properly licensed or exempt from licensure.