RSU vesting schedule issue

rbennett00

Version R54.16

If you enter a new RSU Grant transaction as follows: (example):

Grant date: 8/31/24
1,000 shares
Fully vested after 4 years (48 months)
First vest - 25% on 8/31/25, then every 6 months.

It should create a schedule like this:

8/31/25 - 250 shares
2/28/26 - 125 shares
8/31/26 - 125 shares
2/28/27 - 125 shares
8/31/27 - 125 shares
2/29/28 - 125 shares
8/31/28 - 125 shares

Instead it creates this:

8/31/25 - 250 shares
2/28/26 - 107.1428571 shares
8/28/26 - 107.1428571 shares
2/28/27 - 107.1428571 shares
8/28/27 - 107.1428571 shares
2/29/28 - 107.1428571 shares
8/29/28 - 107.1428571 shares
8/31/28 - 107.1428571 shares

rbennett00

Meant to add, the workaround is to set the initial vesting date to the 28th of the month instead of the 31st so that it doesn't create an extra event, but you shouldn't have to do that.

splasher

To start with, I know nothing about RSU grants, but I wonder if it is because of the month you are using? August and February pair up and with February generally having 28 days, it might cause an issue. I'm not condoning Q's process in anyway, but dealing with dates between 28 & 31 can cause squirrelly results.

What happens if you pick a month other than the two mentioned above.

rbennett00

Oh, it's 100% due to the difference in days in the month - but it's not limited to Aug/Feb. It would also impact months with 31 vs. 30 days - so for 6 month vesting schedules it also impacts Dec/Jun, Mar/Sep, May/Nov, and Oct/Apr.

QuickUserPSP

It looks like instead of using months to determine the 6-month intervals, they are using days for some reason.