Sell-to-Cover FMV Alignment Services

Restricted stock units (RSU) play a key role in developing a competitive equity compensation offering. However, leveraging the traditional sell-to-cover process to pay for tax obligations at RSU vesting frequently causes employee confusion and financial frustration while reducing the value added for employees.

Employing an average sales price as the fair market value (FMV) can align tax outcomes with participant experience by reducing short-term gains or losses thereby decreasing employee confusion regarding tax treatment and easing administrative burdens for stock plan administrators. Implementing this approach creates an agile vesting environment, drives cost savings, and positions the company to strengthen their ability to attract top talent.

Explore how to incorporate an average sales price-based RSU vesting protocol to your equity compensation landscape that increases vesting efficiency, meets your employees’ expectations, and improves the value delivered through the RSU program.