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"Options" vs. "TSRUs"

Unknown
Unknown Member
edited October 2018 in Investing (Windows)
My company switched from "options" to "TSRUs" (like option but include dividends), how can I record those grants?

Comments

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    Why don't you explain what a TSRU is AND why you can't record it as if it WAS an "option".
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Unknown
    Unknown Member
    edited January 2017

    TSRU is both similar to Option & Restricted Stock grant, plus additional wrinkle.

    TSRU is grant of a # shares at a specific strike price with a specific vesting schedule. 

    However, like RSU it has specified sell schedule.

    Also, you are credited for all dividends paid out between the grant & sell date.

    For example:
    Granted 1000 shares on 1/1/12, strike price $10, vesting date of 1/1/15, and sell date of 1/1/17.

    On 1/17, market price is $20, and over the 5 years a quarterly dividend of $0.10 per share was paid out.

    Payout = ( ($20-$10) + ($0.10 x 4 x 5) ) x 1000 =
      ( $10 + $2 ) x 1000 = $12,000

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    edited March 2017
    I've never heard of RSUs having a specified sell schedule. Is this in Canada, the U.S., or somewhere else?
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • Unknown
    Unknown Member
    edited January 2017
    USA, it's sort of hybrid of options & RSUs
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    Found these definitions on Fidelity NetBenefits:
    ***

    TSRU

    Total Shareholder Return Unit

    TSRUs Granted

    The number of total shareholder return units an issuer (e.g., your company) has awarded to you. TSRUs give you the
    right to receive an award of shares with a value equal to the change in stock price over a set period of time as well
    as dividend equivalents accrued over that same time period, subject to certain restrictions.

    TSRUs Vested

    The number of total shareholder return units that have vested.

    TSRUs Unvested

    The number of total shareholder return units that have not yet vested.

    TSRUs Settled

    The number of total shareholder return units that have settled.

    TSRUs Cancelled

    The number of total shareholder return units that have been canceled
    because you no longer work for the employer who issued them.

    TSRUs Balance

    The number of total shareholder return units that are currently outstanding.

    TSRU Potential Value

    Total value of the number of outstanding TSRUs multiplied by the most recent Gain per TSRU calculation.

    TSRU Settlement Date

    The date the TSRU award will be settled.

    TSRU Settlement Price

    The fair market value calculation of common stock on the settlement date of the grant of TSRUs

    TSRU Distribution FMV


    The price per share of the underlying stock at the time your total
    shareholder return unit was distributed and as used to determine
    the amount of income treated as compensation for Federal income tax
    purposes.. The price per share is based on the fair market value (FMV)
    option that your company's TSRU plan uses. Fair market value is based
    on either the prior business day's close, average high and low for the
    day, real-time price, or today's close as defined by the company's plan
    rules.

    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    AJ, you've still never explained why you can't record these as options.
    Also, what Q product and year are you running?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Unknown
    Unknown Member
    edited May 2018

    Windows 2017...

    If I enter as options, then it doesn't account for the dividends, which can account for $4-$6 per share...

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    edited March 2017
    Are you just trying to track the value of the TSRUs? You might be able to do that using the option wizard to set up the grant. But I don't think there is any way the tax implications will be right.
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited January 2017
    A.J. said:

    Windows 2017...

    If I enter as options, then it doesn't account for the dividends, which can account for $4-$6 per share...

    Not my area, but could you simply fudge the market value of the shares.  Per your example above, when the market value is $20, you plug in $22.  You would need to somehow track those dividend contributions separately.  
This discussion has been closed.