RSUs AT UDEMY

Time-based RSUs

Time-based restricted stock units (RSUs) are a type of long-term incentive. They’re a promise to deliver a share of stock in the future, generally on the vesting date. As the RSUs vest, they become yours over time.

Your New Hire grant starts delivering value in 12 months
(Vests over 3 years, with 33% of your award vesting after the first year, then smaller portions vesting each quarter thereafter. Grants awarded before 2025 vested quarterly over 4 years.)

How it works

The process is the same whether you’re receiving an Annual Refresh Equity Grant of time-based RSUs as part of your annual compensation, or receiving Promotion RSUs after being promoted.

1

You receive a Restricted Stock grant that includes time-based RSUs and accept the grant. Details will be communicated to you on how to accept your grant.

2

The RSUs vest over time. Ownership of the shares you have been awarded.

3

As RSUs vest, they convert to shares of company stock in your name and are delivered to your personal E*TRADE account. Note: Tax laws vary by country. Once vested, shares are yours to hold or sell as you choose. Taxes may be due upon vesting. Consult your financial advisor to decide how to pay the taxes.

4

You can sell shares (in a non-blackout period) or choose to hold for even greater growth (if the stock price increases).

How RSUs vest

You deserve frequent opportunities to share in the company's success.

You earn rights to the shares of stock represented by your RSU grant in regular increments over time. It's not an “all or nothing” proposition. Time-based RSUs granted starting in 2025* vest across 3 years: 33% at 1 year, then 8.375% each quarter thereafter, until your award is 100% vested.

With refresh and promotion grants, your RSUs vest evenly across 3 years: 8.33% each quarter, until your award is 100% vested.

*Most new hire grants awarded prior to May 2025 vested across 4 years: 25% at 1 year, then 6.25% each quarter thereafter, until 100% vested. Please check E*TRADE to determine your specific vesting schedule.

  • For
    Example

    Example for educational purposes only, assuming a grant awarded after May 2025. Fictional past performance is no guarantee of future results.

    You received a Restricted Stock grant  delivered as 2,000 time-based RSUs. The company stock price was $10 per share, so the award was equal to $20,000.

  • The company stock price rose to $13 per share over the next 3 years.

  • In this example, an RSU award initially valued at $20,000 increased in value by $6,000 (+30% change) when it fully vested.

    Multiply the shares (2,000) by the market price ($13) for a total value of $26,000, minus taxes.

KEY FEATURES

    Regular Vesting

  • Our RSUs vest and are delivered to your personal E*TRADE account in regular intervals, so you gain ownership in regular intervals.

    • Stable Value

  • Once vested, your award converts to the number of shares issued on your grant date. Depending on trading prices when you sell, actual value can be more or less than the dollar value estimated originally when the grant was issued.