Adobe Equity FAQ

Adobe RSUs follow a 4-year vesting schedule with a 1-year cliff, meaning 25% of your grant vests after your first year. After the cliff, the remaining shares vest quarterly (25% per year) until you reach the 4-year mark. Some employees may have monthly vesting after the cliff instead of quarterly, depending on their specific grant terms.

No, refresher grants are not guaranteed for all employees. They are primarily used to retain top performers rather than being a standard annual benefit for most levels. For example, L4 employees who do receive refreshers can expect grants ranging from $75k-$125k, but eligibility depends on performance and business needs.

Adobe's ESPP allows you to contribute up to 25% of your compensation (maximum $25,000 per year) to purchase Adobe stock at a 15% discount. The plan features a 24-month lookback provision, meaning you buy at 15% off whichever price is lower: the price at the start of the 24-month offering period or the price at the purchase date. Purchases occur semi-annually, and you can enroll twice a year in June and December.

To receive favorable long-term capital gains tax treatment on your ESPP shares, you must hold them for at least 2 years from the offering date AND at least 1 year from the purchase date. If you sell before meeting both requirements, it's a disqualifying disposition and a portion of your gain will be taxed as ordinary income.

When your RSUs vest, they are treated as ordinary income and subject to income tax withholding at that time. Adobe allows you to adjust your withholding rate if desired. The taxable amount is based on the fair market value of the shares on the vesting date, and this income will be included on your W-2.

Yes, Adobe matches 50% of your contributions up to 6% of your eligible compensation, meaning you can receive up to a 3% match. The match vests immediately with no waiting period. Adobe also offers Roth 401(k) options and mega backdoor Roth capability through after-tax contributions, with the plan managed through Vanguard.

If you leave Adobe, you will forfeit any unvested RSUs. Only shares that have already vested by your termination date are yours to keep. Make sure to check your vesting schedule to understand exactly how many shares will vest before your departure date.

If you leave Adobe within your first year, your sign-on bonus will be clawed back on a pro-rata basis. For example, if you received a $25,000 sign-on bonus and leave after 6 months, you would need to repay approximately half of it. The bonus is typically paid in one lump sum after your first 30 days or within 45 days of starting.