Fractional RSUs Clause Samples
The Fractional RSUs clause defines how restricted stock units (RSUs) that result in fractional shares are handled under an equity compensation plan. Typically, when an employee earns RSUs that do not add up to a whole share, the clause will specify whether these fractions are rounded up, rounded down, or settled in cash. For example, if an employee vests in 10.5 RSUs, the clause might state that only 10 shares are issued and the 0.5 share is paid out in cash or disregarded. This clause ensures clarity and consistency in the treatment of fractional shares, preventing disputes and administrative confusion when distributing equity awards.
Fractional RSUs. In the event the Participant is vested in a fractional portion of an RSU, such portion shall be rounded down to the nearest whole number.
Fractional RSUs. Notwithstanding any other provision of this Agreement or the Plan to the contrary, in the event the Director is credited with any fractional RSUs as a result of the grant of any dividend equivalents under Section 8 of this Agreement prior to the Vesting Date, such fractional RSUs shall be rounded up to the nearest whole RSU and shall otherwise vest in accordance with the terms of this Agreement.