Block Equity FAQ

Block RSUs typically vest over 4 years with a 1-year cliff, then vest quarterly thereafter. This means 25% of your grant vests after your first year, and the remaining 75% vests in equal quarterly installments over the next three years. You'll receive additional shares every quarter after your first anniversary.

Yes, Block offers a unique choice program that allows U.S. employees to receive the value of some or all of their equity compensation in cash instead of stock. This cash is distributed as part of your regular pay and also applies to performance bonuses, giving you flexibility in how you receive your compensation.

Block's ESPP allows you to purchase company stock at a 15% discount with a lookback provision, meaning you get the discount on the lower of the price at the beginning or end of the offering period. To qualify for favorable tax treatment, you must hold the shares for at least two years from the grant date and one year from the purchase date.

You can only sell Block stock during approved open trading windows, as the company has blackout periods around quarterly earnings announcements and major events. Block also offers 10b5-1 plans, which allow you to set up a prearranged selling schedule in advance, enabling sales even during blackout periods.

Yes, Block provides refresher RSU grants on an annual basis based on your performance. These ongoing grants typically vest over a 3-year period, helping to retain employees and provide continued equity incentives beyond your initial grant.

You can contribute up to $25,000 per year to Block's Employee Stock Purchase Plan. This federal limit ensures tax-advantaged treatment of ESPP purchases and applies across all ESPPs you may participate in during a calendar year.

When your RSUs vest, they're taxed as ordinary income at their fair market value on the vesting date. Block withholds taxes at a default rate of 22% for federal income tax, though the supplemental wage rate can be as high as 37%. You'll also owe Social Security and Medicare taxes on the vested amount.

If you leave Block before your RSUs vest, you will forfeit any unvested shares. Only RSUs that have already vested by your departure date are yours to keep. This is why the 1-year cliff is significant—you must stay at least one year to receive any equity from your initial grant.