Oracle changed RSU liability from net shares to sell to cover
What could be the logic behind this? I don't see how this is better, just makes it more hassle, and a potential STCG in case of variation.
1. Cash flow improvement: "Sell to cover" reduces Oracle's need to use its own cash for employee tax obligations.
2. Less shareholder dilution: Full shares are issued, potentially resulting in less overall dilution compared to "net shares."
3. Simplified accounting: "Sell to cover" can streamline Oracle's equity compensation accounting processes.
4. Potential stock appreciation: If Oracle expects its stock price to rise, issuing full shares could benefit employees.
5. Industry alignment: This change may bring Oracle's practices in line with tech industry norms or competitor practices.
GPT doesn’t know net shares mean shares allocated to you are withheld for tax, and whole units are sold / withheld, not fractional.
That sucks. The whole point of RSU is to time them correctly and make profits. If it’s sell to cover, then you might even be at loss
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