What Time of Day Do Your RSUs Actually Vest?

Restricted Stock Units (RSUs) are a common form of equity compensation, representing a promise from an employer to deliver company stock in the future. These units are not immediately owned upon grant; instead, they become fully owned through vesting. Vesting involves meeting specific conditions, typically continued employment over a set period, which converts the promised units into actual shares.

Understanding the Vesting Event

RSU vesting is determined by a specific vesting date, not a precise time of day. While legal ownership transfer might occur at the very beginning of the vesting date, such as midnight in a particular time zone, the practical ability to access or sell these shares often depends on subsequent administrative processing. The “time of day” for vesting is frequently an internal system trigger, not a universally observed moment when shares become immediately available for trading.

Shares are legally yours on the vesting date, assuming all conditions are met. However, the exact moment they appear in your brokerage account or become tradable can vary, influenced by administrative and market factors.

Factors Influencing Vesting Timing

Several factors can influence when RSUs become accessible in an employee’s account on the vesting date.

Company Policy

Company policy plays a significant role, as each employer sets its own RSU plan rules and vesting schedules. These policies can dictate the exact day and, sometimes, the general time window for vesting.

Time Zones

Time zones also impact when vesting events are processed. The company’s headquarters’ time zone or the plan administrator’s time zone often determines when the system formally recognizes vesting. For employees in different time zones, this can mean a delay between the official vesting time and their local business hours.

Brokerage Processing

Brokerage processing introduces timing variability. After RSUs vest, the brokerage firm needs time to process the transfer and make shares available. This processing can take several hours or a few business days, with shares typically deposited within one to five business days. Market hours also influence when vested shares become tradable, as they can only be bought or sold when the relevant stock exchange is open.

Weekends and Holidays

Vesting dates that fall on weekends or holidays can affect the processing timeline. If a vesting date occurs on a non-business day, shares may legally vest, but their market value for tax withholding might be determined on the next trading day. The actual issuance of shares may also be delayed until the next business day.

Locating Your Specific Vesting Details

To determine the precise vesting details for your RSUs, review your specific RSU grant agreement or the company’s equity plan document. These documents contain the official terms regarding vesting dates and any specific conditions or timing clauses that apply to your award.

You can also contact your company’s Human Resources department or the dedicated equity administration team for clarification. These teams manage employee equity programs and can provide specific information about your RSU vesting schedule and associated procedures.

Finally, check your online brokerage account where your RSUs are held. Brokerage platforms typically display the status of your RSUs, indicating when shares have vested and when they become available for sale or transfer.