Quarterhill Inc T.QTRH

RSU's, RSA's, Options, etc

[Justhalffull]

RSU'S, RSA'S, OPTIONS

Seems to be a lot of misunderstanding and confusion about RSU"s.  Here is a simple, layman's term link that explains them and how they work and how they differ from Restricted Stock Awards and Option awards.

https://carta.com/blog/breaking-down-rsas-and-rsus/
 

[shareholders1]

My response was to comment by Chichi that RSUs must be cashed as soon as they vest,

[Justhalffull]

Curiously enough, at one time Wilan (Quarterhill) RSU's were all settled at vesting for cash.  No choice.  That changed a few years ago so that holders can choose to take the shares or take cash.  In either case, however, they have taxable income at time of vesting, and must provide Quarterhill the withholding tax for payment to Revenue Canada.

[shareholders1]

Do you know what the timing for the choice is? That choice represents a disposition of an equity right. ie Should be the same as buying or selling the stock.

[Justhalffull]

They do not have a choice on when they vest. (generally, although a few do allow some timing for tax purposes)  The vesting date is decided when they are awarded the RSU's.  The value of the shares at vesting becomes taxable income at the time of vesting, whether they take cash or shares.  If they take shares, and hold them for some period of time, any increase or decrease in

[shareholders1]

My point is not whether they pay tax, but that the choice to take cash vs shares is a trade. The 3 trades Jan 1 (for cash) may have had the benefit of info (re the 2 PRs) that shareholders did not have.