Home Depot Equity FAQ

Home Depot's ESPP allows you to purchase company stock at a 15% discount through payroll deductions of up to 20% of your salary. The plan has 6-month offering periods starting in January and July, with a 27-month lookback provision that uses the lower of the stock price at the beginning of the offering period or the purchase date. You can enroll during the January or July enrollment windows for periods ending June 30 or December 31.

Home Depot offers multiple RSU vesting schedules depending on your role and grant type. Common schedules include: Option One (25% at 3 years, 25% at 6 years, 50% at age 60 or 10 years), Option Two (100% at your 3rd, 4th, or 5th anniversary), and a 4-year schedule (50% in year 2, 50% in year 4). Some RSUs are performance-based, vesting 50% at 30 months and 50% at 60 months contingent on meeting profit targets.

Stock options at Home Depot typically vest 25% per year starting on the second anniversary of your grant date, with a 2-year cliff. This means you'll receive no vested options in the first two years, then 25% will vest in year 2, and the remaining 75% will vest 25% annually over the next three years. Options expire 10 years from the grant date.

Performance-based RSUs at Home Depot vest contingent on the company meeting specific operating profit targets. These typically vest 50% at 30 months and 50% at 60 months, but only if the performance goals are achieved. If targets aren't met, you may receive fewer shares or none at all.

To qualify for favorable tax treatment on your ESPP shares, you must hold them for at least 2 years from the offering date and 1 year from the purchase date. If you meet these requirements, a portion of your gain may be taxed as long-term capital gains rather than ordinary income.

If you leave Home Depot, unvested RSUs and restricted stock are typically forfeited. For stock options, you generally have 3 months after termination without cause to exercise vested options, or 1 year if you leave due to death or disability. Executives should note that unvested RSUs can be forfeited if you work for a competitor after retirement.

Yes, executives should be aware that unvested RSUs and restricted stock can be forfeited if you work for a competitor after retirement. Additionally, executive awards may include non-competition provisions lasting 18-24 months and non-solicitation agreements lasting 36 months. These restrictive covenants can result in forfeiture or clawback of equity compensation if violated.

Restricted shares and RSUs cannot be sold, transferred, or pledged until they vest. Once vested, employees with access to material nonpublic information must comply with Home Depot's insider trading policies, which include blackout periods (typically before earnings announcements). Regular employees can generally sell vested shares outside of blackout periods.