Target Equity FAQ

Target RSUs typically vest over 4 years with 25% vesting each year. There's a 1-year cliff, meaning your first 25% vests after one year of service, then the remaining shares vest quarterly on the last day of each fiscal quarter (April, July, October, and January). Some grants may have alternative vesting based on 3 years of service with minimum performance targets.

After your initial 1-year cliff, your RSUs vest quarterly on specific dates: the last day of April, July, October, and January in each fiscal year. These dates align with Target's fiscal quarters, so mark your calendar for these months to track when shares become yours.

Target's ESPP offers a 15% discount on company stock and includes a lookback provision, allowing you to purchase shares at the lower price between the offering period start and end dates. The offering period is 12 months, and you can contribute up to $25,000 per year to maximize your benefit.

You must comply with Target's trading policy, which may restrict trading during certain blackout periods throughout the year. Check with your stock plan administrator or HR about current trading windows before attempting to sell your shares.

Target's default tax withholding rate for RSUs is 22%, though you can adjust this if needed. Keep in mind that this withholding may not cover your full tax liability, especially if you're in a higher tax bracket—the supplemental rate can go up to 37% for high earners.

To qualify for favorable tax treatment on ESPP shares, you must hold them for more than 1 year after the purchase date AND more than 2 years after the offering date. Meeting these requirements allows you to potentially pay long-term capital gains rates on a portion of your profit instead of ordinary income rates.

Target offers a generous 401(k) match of 100% on the first 5% of your contributions (up to $6,000 maximum), and it vests immediately. This is separate from your equity compensation but is an important part of your total compensation package—consider maximizing both your ESPP and 401(k) contributions for optimal financial benefits.

If you leave Target, you typically have 90 days after your termination date to exercise any vested stock options. Options expire after 10 years from the grant date, so plan accordingly if you're considering leaving the company.