What To Do with RSUs After Leaving a Tech Job

Restricted Stock Units (RSUs) are one of the most common forms of compensation in the technology industry. Many employees at large tech companies receive a portion of their income through stock that vests over time.

While RSUs can be an excellent way to build wealth, they can also create complicated financial decisions when you leave a company or experience a layoff.

If you recently left a tech job, it’s important to understand what happens to your RSUs and how they may affect your taxes and investment strategy.

What Happens to RSUs After Leaving a Company?

When you leave a company, your RSU situation usually falls into two categories:

• Unvested RSUs: These are typically forfeited when employment ends.
• Vested RSUs: Shares that have already vested remain yours.

Once RSUs vest, they are generally taxed as ordinary income based on their market value at the time of vesting.

If you decide to sell the shares later, additional gains may be taxed as capital gains.

Why Many Tech Employees Become Overexposed to Company Stock

Because RSUs often vest regularly over several years, many technology professionals gradually accumulate a large amount of company stock.

This can create a situation where a significant portion of your wealth is tied to one company’s performance.

If the company experiences volatility or a downturn, your portfolio may be more exposed to risk than you realize.

Questions to Ask Before Selling RSU Shares

There is no single strategy that works for everyone, but these questions can help guide your decision:

• How much of my portfolio is already invested in company stock?
• What tax impact would selling shares create?
• Do I need liquidity for short-term financial goals?
• Would gradual diversification make sense?

Turning RSUs Into Long-Term Wealth

For many tech professionals, RSUs represent a significant portion of their net worth. Developing a thoughtful plan for managing stock compensation can help turn those shares into a balanced investment strategy that supports long-term goals.

Whether you recently changed jobs or experienced a layoff, reviewing your RSUs alongside your retirement accounts, tax planning strategy, and investment portfolio can help create greater financial clarity.