Johnson & Johnson Equity FAQ

Johnson & Johnson RSUs typically vest on a graded schedule over several years. Once your RSUs vest, they will be settled and delivered to you within 60 days following the vesting date, but no later than March 15th of the following year. Keep in mind that RSUs are taxed as ordinary income when they vest, not when you sell the shares.

The J&J ESPP allows you to purchase company stock at a 15% discount with a lookback feature, meaning the discount is applied to the lower of the stock price at the beginning or end of the offering period. You can contribute up to 15% of your salary, with a maximum annual purchase limit of $25,000 based on the fair market value at the offering start. The offering period can last up to 27 months.

Yes, Johnson & Johnson has trading policies that include blackout periods around certain times. Additionally, if you're subject to stock ownership guidelines (typically executives), you cannot sell net shares following option exercises or RSU/PSU vesting until you've met your required ownership level. Always check current trading windows before selling.

When your RSUs vest, they are taxed as ordinary income at your regular tax rate. Johnson & Johnson will withhold 22% for federal taxes by default, though the supplemental wage rate can go up to 37% for higher earners. You'll also owe Social Security, Medicare, and any applicable state and local taxes at vesting.

To receive a qualifying disposition for 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. Meeting both requirements allows a portion of your gain to be taxed at the lower long-term capital gains rate instead of ordinary income rates.

Yes, Johnson & Johnson offers a generous 401(k) match of 100% on the first 6% of your salary you contribute, up to a maximum company match of $7,200 annually. The match vests immediately, and the company also offers a Roth 401(k) option and mega backdoor Roth capability through after-tax contributions.

If you retire from Johnson & Johnson and join a competitor within 18 months of your termination, you will forfeit any unvested RSUs. This non-compete provision is designed to protect the company's interests. Make sure to carefully consider the timing and implications before accepting a position with a competitor.

Johnson & Johnson offers several types of equity compensation including Restricted Stock Units (RSUs), Performance Stock Units (PSUs), Non-Qualified Stock Options (NSOs), and an Employee Stock Purchase Plan (ESPP). The specific mix you receive typically depends on your role and level within the organization.