Shopify Equity FAQ

Shopify has removed the traditional one-year cliff, so your RSUs begin vesting immediately upon grant. Vesting occurs quarterly, with schedules varying between employees—some follow a 3-year schedule (1/3 annually) while newer grants may vest over different periods. Check your specific grant agreement for your exact vesting schedule.

Shopify's ESPP offers a 15% discount on company stock with a lookback provision, meaning you purchase at 85% of the lower price between the offering date and purchase date. The offering periods are 6 months long with enrollment windows typically opening in January and July. You can contribute up to 15% of your salary, with a maximum of $25,000 per year.

If you're at L6 or above, you're eligible for annual performance-based refresher grants. Targets are 33% of your initial grant for a positive review and 50% for a high positive review. These refresher grants vest over 3 years.

To receive favorable tax treatment on ESPP shares, you must hold them for at least 2 years from the offering date AND 1 year from the purchase date (qualifying disposition). If you sell before meeting both requirements (disqualifying disposition), the discount is taxed as ordinary income. The tax complexity of ESPP dispositions is a common concern for Shopify employees, so consider consulting a tax professional.

Only vested RSUs are yours to keep if you leave Shopify. Any unvested RSUs will be forfeited upon termination of employment. Since Shopify now vests equity quarterly with no cliff, you'll retain whatever has vested up to your departure date.

Shopify offers RSUs (Restricted Stock Units), stock options (both ISOs and NSOs), PSUs (Performance Stock Units), and an ESPP. Through the Flex Comp program, you can choose your preferred mix of cash and equity. Signing bonuses are also available, though they're typically quite small.

Flex Comp allows you to customize your compensation mix between cash, RSUs, and stock options using a slider interface. If you choose to allocate more equity (RSUs or options) above the minimum guardrails, you receive a 5% bonus on that extra equity allocation. This gives you flexibility to align your compensation with your personal financial goals.

You can generally sell vested RSUs during open trading windows, as Shopify has blackout periods that restrict when employees can trade. If a settlement date falls during a blackout period or trading restriction, it will be extended. Note that you're not allowed to perform hedging strategies like buying protective puts on your Shopify stock.