Settle and cancel RSU awards

Review the award before settlement

Open the RSU’s lifecycle actions in Securities. Check vested and unsettled units, the holder, share class, plan, and recorded liquidity condition. A time-vested award may still have an additional settlement condition in its agreement.

The app records the event you enter. It does not verify that a liquidity event occurred, authorize settlement, or calculate payroll withholding.

Record a settlement into shares

Choose Record settlement, enter the whole-number units and actual settlement date, and review the receiving share class. The app limits settlement to units vested and unsettled on that date.

Settlement issues a linked share certificate. Unlike an option exercise, there is no strike-price purchase step and no separate option to leave the settlement uncertificated. After saving, check both the award and certificate.

For example, settling 3,000 units of a 10,000-unit award leaves 7,000 units before considering cancellations or other settlements. The certificate represents the 3,000 issued shares.

Record cancelled units

Choose Cancel units and check the date and proposed amount against the event. The form accounts for units already settled and the vesting schedule. Review where cancelled units go under the plan’s recycling rules.

A departure review may identify RSUs requiring cancellation, but the award cancellation is a separate action. Do not reduce the original grant quantity to approximate a forfeiture.

Reconcile the award after the event

Compare original quantity, settlements, cancellations, and remaining units. Review the holder’s statement, plan availability, fully diluted ownership, and the stock compensation report where relevant.

Cash settlement, tax withholding, and net-share settlement arrangements require separate reconciliation if the actual transaction includes them. The standard workflow described here records a gross settlement into linked shares.