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Borel Fields

08/03/20 11:31 PM

#101856 RE: moneycrew #101828

This is how restricted stock award vesting works at any compliant company. They only give the recipient a fraction of the shares, while selling the rest - enough to cover withholding on the gain recognized - on the same day as the vesting. E*Trade handles the mechanics at one company I know.

The company passes on the proceeds to the IRS/State tax. None (OK, a fractional share amount) goes to NP. It's not like NP had any choice.

As JustDF noted, the acquisition price is zero - standard for restricted stock vesting - so the entire price is short-term taxable gain. And the governments require their money ASAP.