Alphabet (Google) Equity FAQ

Google's most common new hire RSU schedule vests 38% in year 1, 32% in year 2, 20% in year 3, and 10% in year 4. This front-loaded approach means you receive more equity earlier in your tenure. The actual vesting frequency (monthly, quarterly, semi-annually, or annually) varies depending on your grant size.

Google's ESPP allows you to purchase stock at a 15% discount with a lookback provision over a 27-month period. You can contribute up to 15% of your salary or $25,000 annually, whichever is less. Purchases occur semi-annually, and the offering period is 12 months with 6-month purchase periods.

Google provides refresher RSU grants annually (or potentially every 6 months), with larger grants typically given upon promotion. Unlike the front-loaded new hire schedule, annual refreshers typically vest evenly at 25% per year over four years. This creates overlapping vesting schedules that help maintain steady equity compensation.

Google's default tax withholding rate on RSU vesting is 22%, though the supplemental wage rate can be as high as 37%. You can adjust your withholding rate if needed. Remember that RSUs are taxed as ordinary income at vesting, based on the fair market value on the vesting date.

To achieve a qualifying disposition for favorable tax treatment, you must hold ESPP shares for at least one year after purchase AND at least two years after the offering date. If you sell before meeting both requirements, it's a disqualifying disposition, and the discount is taxed as ordinary income rather than receiving more favorable capital gains treatment.

Yes, Google matches 50% of your 401(k) contributions up to the IRS limit, or 100% up to $3,000, whichever is greater. The match vests immediately with no waiting period. Google also offers Mega Backdoor Roth conversions through after-tax 401(k) contributions, administered through Vanguard.

Only vested RSUs are yours to keep when you leave Google. Any unvested RSUs will be forfeited upon your departure. Make sure to understand your vesting schedule and consider the timing of your departure, especially if you have significant equity vesting soon.

Trading blackout windows typically occur 6-8 weeks following quarterly earnings announcements, depending on your level and share type. However, you can set up an Employee Trading Plan (ETP) or a 10b5-1 plan to sell automatically upon vesting, which allows you to bypass blackout windows.