I am just learning about investing, so I’m looking to this community for some advice. I was awarded $35k of RSU’s in December to supplement what was expected to be a raise. Most everyone in the company due for raises got this instead.
At the time it was ok because our stock had been doing well even since covid lockdown. Then last month there were layoffs in a department that they predicted was going to need a lot of new employees. They estimated high, hired a lot of people, and then realized they made a bad choice. The layoffs came and the stock tanked. Down from $300 to $22. All current employees feel cheated that their yearly increases are worthless, including myself.
Now we are being told that they want to reprice the stock we were given in December. Instead of being granted the (35k) 175 RSU’s at around $200 a share, it will be 700 RSU’s priced at $50 a share. The catch is this would restart my vesting schedule.
A lot of people signed it, but I haven’t yet. I am getting emailed constantly about it and being advised to do so.
Can you please explain the pros and cons of this for me, and especially how this is going to help the company maybe at my expense? Thank you in advance.
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