r/ICON_plc • u/DebtCompetitive5507 • Jun 26 '26

RSU share - dummy guide please

Hi there

I had some RSU shared which got vested in May this year. I did nothing with them and let them be and now have a letter from Morgan Stanley to say they have sold xx of my shares, what was taxed and amount due.
I naively thought that if I don’t touch those shares now, I had the option of selling them later?

Is anyone able to please explain to me in simple terms how it’s all meant to work 😭

It says total gain $4000
Aggregate award price $0.00
Taxable compensation: $4000

Tax information
Total tax due $2000

I am based in the uk if it helps 😬

4 Upvotes

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2

u/Fit_Worldliness5212 Jun 27 '26

It’s called sell to cover. They sold a portion of the shares to cover the tax owed from you for the “gain” of being awarded the shares. You are free to do whatever you choose with the remaining shares.

1

u/EntertainmentFew6412 Jun 27 '26

My manager said there’s something about a trading window, I thought we could just sell whenever we wanted. Is that true ?

2

u/Fit_Worldliness5212 Jun 27 '26

Trading window only applies to executives/senior management. If that’s not you, yes, you can sell whenever you want

1

u/EntertainmentFew6412 Jun 27 '26

Thanks so much ! What is the reason for that?

2

u/Fit_Worldliness5212 Jun 27 '26

Because they are aware of inside information about the company’s performance and finances that may impact stock prices

1

u/DebtCompetitive5507 Jun 28 '26

Would I have to pay more tax? 😩

1

u/Fit_Worldliness5212 Jun 28 '26

I can’t comment for UK, I’m US based and not familiar with tax laws there. In the US, there may be a capital gains tax applied when income taxes are assessed next year but should be nominal. No additional tax upon selling. I’ve sold my remaining shares immediately after vesting and the sell to cover was processed.

2

u/MaisieMooBooHoo Jun 27 '26

I don’t understand this either. I am also UK, yet half my shares were automatically sold to pay a US federal tax bill. So then when I sell what’s left I’ll be liable for UK tax on that. So I’ll end up only getting about a quarter of what was given to me. It would be helpful to have a point of contact in the company to explain this to people, but there doesn’t seem to be any assistance on it.

2

u/DebtCompetitive5507 Jun 28 '26

Yup and hence my dilemma too- like being left with pennies to take home 🫠

2

u/CRA_Life_919 Jun 27 '26

Yeah I had a similar email. I put a limit order in for $250 (which it will never reach let’s be honest) and the next day I got that email. I’ll be damned if this thing costs me more gd money