Procter & Gamble Equity FAQ

The vesting period depends on when your RSUs were granted. For grants made after 2017, RSUs typically vest over 3 years. If you received RSUs before 2017, they vest over 5 years. Early vesting may occur under specific conditions such as death, retirement, disability, or divestiture.

Yes, P&G's Long-Term Incentive Plan (LTIP) allows you to choose your mix of stock options and RSUs. You can select from five allocation options: 100% options, 75/25, 50/50, 25/75, or 100% RSUs. This gives you flexibility to align your equity compensation with your personal financial goals and risk tolerance.

P&G's ESPP allows you to purchase company stock at a 15% discount with a lookback feature. The offering and purchase periods are 6 months, with purchases occurring semi-annually. You can contribute up to 15% of your eligible compensation, subject to a maximum of $25,000 per year.

It depends on when your RSUs were granted. RSUs granted after 2017 receive dividend equivalents during the vesting period. However, RSUs granted before 2017 do not pay dividends until after they vest.

P&G allows you to adjust your tax withholding rates for equity compensation events. Because RSUs, stock options, and ESPP purchases have different vesting, exercise, and settlement dates, tax planning can be complex. Consider consulting with a tax professional to optimize your withholding strategy based on your individual situation.

If you leave P&G before your stock options vest, you will generally forfeit any unvested options. Stock options granted after 2017 typically vest over 3 years and generally cannot be exercised within the first year of the grant date, except in cases of death. Once vested, options expire 10 years from the grant date.

Yes, P&G has blackout periods when you cannot exercise options, sell shares, or complete certain transactions. These blackouts typically occur around earnings releases, though specific timing isn't publicly detailed. P&G's Insider Trading Policy applies to all employees, and the company may suspend transactions for corporate purposes (except in the five days before option expiration).

The P&G PST & ESOP Plan (PST Plan) is one of P&G's main retirement programs that involves holding P&G shares. A unique feature is that you must hold these P&G shares until age 45 before you're allowed to reallocate them to other investments. This creates concentrated single-stock risk that you should consider in your overall financial planning.