Enhance regulation on "Restricted Stock Units" to end corporate pump and dump strategies
It's time congress address enhancing employee abusive "Restricted Stock Units" practices via regulation and end corporate pump and dump strategies.
In many companies, it's common for the company to "award" restricted stock units to employees with a vesting schedule set to vest these RSUs over multiple years in the future under the guise of incentivizing the employees from leaving the company and rewarding them for their "loyalty". In reality, most businesses use this strategy more like a pump and dump scheme to keep the employees from looking for other jobs due to the "potential" of these RSU awards, only to lay off the workers at a whim at no fault of the employee and then the employee ends up with nothing while executives, shareholders, venture capitalists, and activist inventors reap the rewards of the hard work of these employees who are being manipulated and then robbed blindly.
If an employee has RSUs on the books and is laid off at no fault of their own, then all RSUs should immediately vest and be awarded to the employee vs being used as a "loyalty reward" that gets abused and revoked by companies at a whim without any real consequence.
In many companies, it's common for the company to "award" restricted stock units to employees with a vesting schedule set to vest these RSUs over multiple years in the future under the guise of incentivizing the employees from leaving the company and rewarding them for their "loyalty". In reality, most businesses use this strategy more like a pump and dump scheme to keep the employees from looking for other jobs due to the "potential" of these RSU awards, only to lay off the workers at a whim at no fault of the employee and then the employee ends up with nothing while executives, shareholders, venture capitalists, and activist inventors reap the rewards of the hard work of these employees who are being manipulated and then robbed blindly.
If an employee has RSUs on the books and is laid off at no fault of their own, then all RSUs should immediately vest and be awarded to the employee vs being used as a "loyalty reward" that gets abused and revoked by companies at a whim without any real consequence.
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