Meta Equity FAQ

Meta RSUs vest over 4 years with quarterly vesting on February 15, May 15, August 15, and November 15. There are three different vesting schedules (A, B, and C) that distribute the shares differently, but all complete over the same 4-year period. There is no cliff period, so you begin receiving shares in your first quarter of employment.

Meta's ESPP allows you to contribute up to 15% of your salary (maximum $25,000 per year) to purchase Meta stock at a 15% discount. The plan has a lookback provision and quarterly purchase periods, meaning you get the discounted price based on the lower of the stock price at the offering date or purchase date. This can result in significant gains if the stock price increases during the offering period.

The lookback feature means your purchase price is 85% of whichever is lower: the stock price at the beginning of the offering period or the stock price at the end of the purchase period. With offering periods of up to 27 months and quarterly purchases, this can provide substantial additional value beyond the 15% discount if Meta's stock price rises during that time.

Yes, Meta grants annual RSU refreshers to employees. Refreshers follow the same 4-year vesting schedule as initial grants, with quarterly vesting dates. Employees who start before April 1st are eligible for refreshers in their first year; those starting after April 1st begin receiving refreshers in their second calendar year.

RSUs are taxed as ordinary income when they vest, based on the fair market value on the vesting date. Meta withholds 22% by default for federal taxes, though you can adjust this rate. Be aware that this default rate may lead to under-withholding, especially for high earners who may need to make quarterly estimated tax payments to avoid penalties.

Meta matches 50% of your contributions dollar-for-dollar, up to the IRS contribution limit (resulting in a maximum match of $11,750 based on recent limits). The match is 100% vested immediately from day one. Meta also offers a Mega Backdoor Roth option, allowing you to contribute additional after-tax dollars and convert them to Roth.

You will only keep RSUs that have already vested by your termination date. Any unvested RSUs will be forfeited when you leave the company. Make sure to check your upcoming vesting dates before making decisions about your employment, as you may have significant value vesting soon.

Meta has trading blackout periods (typically 30 days before financial reports) when you cannot sell shares, which can sometimes coincide with vesting dates. The company offers 10b5-1 trading plans that allow you to set up automatic sales in advance, which can help you sell during blackout periods. Be aware that your brokerage may report a cost basis of $0 on Form 1099-B for RSUs, requiring you to manually adjust it to avoid being taxed twice on the same income.