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Microsoft Employee Benefits Guide

Restricted Stock Units (RSUs) at Microsoft:

An equity grant of Restricted Stock Units (RSU's) is the primary way that Microsoft employees receive Microsoft stock. One unit of Restricted Stock conveys your right to receive one common share of Microsoft stock at a specific time in the future according to a designated “vesting” schedule.

Microsoft's RSU Vesting Schedule:

Most clients we’ve seen at Microsoft have vesting schedules that operate under the “4 year schedule/1 cliff” time table.

This means that 25% of your RSUs will vest after one year from grant date, and the rest will vest on a quarterly schedule over the following 3 years. So, if you stay at the company all 4 years after the grant date, you will see all your RSUs vest and as a result you will own those Microsoft Stock moving forward.

Want to learn more?

To learn more about RSUs are and how they work logistically, read here.

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