Choosing your last day
When you leave Google, you lose any GSUs that haven’t vested by your last day. Shares that have already vested are yours to keep.
So it’s worth lining up your next few vest dates against the date you’re thinking of leaving. Add up what you’d be giving up, and compare it with what the new job pays, any signing bonus, and how much you want to move on. Sometimes it makes sense to stay a few extra weeks, and sometimes it doesn’t.
Once you have a date in mind, ask HR to confirm in writing what your last day of service will be and what happens to your next vest. If you’re getting a separation package, the terms can be different from the standard agreement.
Before you pick a date
Go through each of your grants, including refresh grants, and note what would vest if you stayed a few more weeks.
Before you give notice
Get HR to confirm your last day and how your next vest will be handled. If you’re thinking of taking a leave first, ask how that affects your grants.
In your last two weeks
Download your award statements, cost-basis records, and pay history while you still have access. It’s also a good time to update the beneficiaries on your stock plan and 401(k).
On your last day
Your vested shares stay in your account, and your unvested GSUs are forfeited. Check that the share count matches what you expected. You’re still not allowed to trade on any material nonpublic information you have after you leave.
After you leave
Sort out health insurance before your enrollment window closes, whether that’s COBRA, your partner’s plan, or the individual market. For your 401(k), you can leave it at Vanguard or roll it over, and if your balance is small, find out whether it will be paid out automatically.
Name a beneficiary for your shares
This is worth doing even if you have no plans to leave. If you die while you’re employed, all of your unvested GSUs vest immediately and go to your named beneficiary within 30 days. If you haven’t named one, the shares go to your estate, which takes longer and is more hassle for your family. I’d also make sure your 401(k) beneficiaries and estate documents are up to date.
If you’re taking a break
Start by figuring out how long you want to be off and how much you spend in a month, including health insurance. Then look at how much cash you have and how many shares you’d need to sell to cover the rest, remembering to set aside money for the taxes on those sales.
One upside is that a year with little or no salary can be a good time to sell shares that have gone up a lot, because the tax rate on long-term gains is lower when your income is lower. Before you plan around that, add up any severance, final vests, and income from a new job to see what your income for the year will really be.
