T-Mobile Equity FAQ

T-Mobile has multiple vesting schedules depending on when you received your grant. Older grants typically vest either 33.3% annually over 3 years or 25% annually over 4 years (with monthly vesting in years 2-4). Newer grants starting in February 2024 vest semi-annually, with vesting dates typically in February and August.

T-Mobile's ESPP offers a 15% discount on stock purchases with a lookback provision. The plan has 6-month offering periods with enrollment windows in January and July. You can contribute up to 15% of your salary, and the purchase price is based on the lower of the stock price at the beginning or end of the 6-month period.

You can generally sell vested shares, but employees may be subject to trading windows depending on your position. T-Mobile has blackout periods, particularly around earnings announcements. If you're in a restricted role, consider setting up a 10b5-1 trading plan to sell shares during blackout periods.

A qualified disposition occurs when you hold ESPP shares for at least 2 years from the offering date and 1 year from the purchase date. Meeting these requirements allows a portion of your gain to be taxed at the lower long-term capital gains rate instead of ordinary income rates, potentially saving you significant taxes.

While T-Mobile provides Long-Term Incentive (LTI) awards including RSUs to executives, the general refresher grant policy for non-executive employees is not clearly specified. Director-level employees and above can receive annual RSU grants of $130,000 or more, but policies may vary by level and performance.

If you're a Section 16 Officer or executive-level employee, you may be able to elect to defer the issuance of shares when your RSUs vest through T-Mobile's Non-Qualified Deferred Compensation Plan. This option is typically not available to non-executive employees, so check your eligibility with HR.

T-Mobile's default tax withholding rate is 22% on RSU vesting. However, this may be lower than your actual tax bracket, which could result in owing additional taxes at year-end. You can adjust your withholding rate if you expect to be in a higher tax bracket.

Only vested RSUs are yours to keep when you leave T-Mobile. Any unvested RSUs will typically be forfeited upon termination of employment. Make sure to check your specific grant agreement for details, as executive agreements may have different provisions.