UnitedHealth Group Equity FAQ

RSUs at UnitedHealth Group typically vest over a 4-year period on an annual schedule, with 25% vesting each year. This means you'll receive one-quarter of your total grant on each anniversary of your grant date for four consecutive years.

UnitedHealth Group's ESPP allows you to purchase company stock at a 10% discount through payroll deductions of up to 10% of your salary (maximum $25,000 per year). The plan has two 26-week offering periods per year: January 2 to July 1, and July 2 to January 1. Note that the plan no longer includes a lookback feature, so the discount applies only to the end-of-period price.

You can enroll in the ESPP during two enrollment windows each year: one in January and one in July. Each enrollment period corresponds to a 6-month offering period where your contributions will accumulate before shares are purchased.

If you're a Section 16 Officer, you must retain one-third of your net vested shares (after taxes) for at least one year following the vesting date. All employees should be aware of blackout periods around earnings announcements when trading is restricted, which is standard for public companies.

Non-qualified stock options (NSOs) at UnitedHealth Group vest ratably over four years, similar to RSUs. This means your options become exercisable in equal installments over the four-year period, allowing you to purchase company stock at your predetermined grant price.

Financial advisors generally recommend contributing enough to your 401(k) to receive the full employer match before investing in the ESPP. UnitedHealth Group offers a 401(k) match with immediate vesting, making it a valuable benefit to maximize first before allocating funds to the ESPP.

To qualify for favorable long-term capital gains treatment on your ESPP shares, you must hold them for at least two years from the first day of the offering period OR at least one year from the purchase date. If you sell before meeting these requirements, a portion of your gain will be taxed as ordinary income.

If you're eligible for retirement (age 55+ with 10+ years of service), your unvested RSUs may continue to vest. Additionally, RSU vesting continues during severance pay periods based on the duration of your severance. If you don't meet these criteria, you'll typically forfeit unvested RSUs upon departure.