Restricted Stock Units (RSUs)

Grant

Our grant dates will always be on the last day of the month. If you are a new hire and start on or before the 20th of the month then your award will be included in the awards granted on the last day of that month. If you start after the 20th of the month your award will be included with the awards granted on the last day of the following month. Your Restricted Stock Unit (RSU) award value ($) in your offer letter will be converted into a number of RSUs based on the trailing average closing price of Upstart stock during a specified thirty (30) trading day period prior to the date of grant.

Vest

New Hire Awards: vesting will be based on a vesting effective date determined at the time the grant is made. The RSUs will vest quarterly after this effective date according to your vesting schedule.

Ongoing/Refresh Awards: vesting will occur quarterly based on a vesting effective date determined at the time the award is made.

Sell

Once your shares have vested they become yours and you can hold them indefinitely. As an employee, you can sell your vested shares when we are in an open trading window.

Taxes

Vest
Vesting is a taxable event as you are recognizing income, and we are required to collect income taxes on the value of the shares on the vesting date. We withhold a sufficient amount of shares from your vesting event to cover your tax liability

Sale
Generally, when you sell your shares, you will owe capital gains tax on the difference between your cost basis (Upstart's fair market value at time of vest or acquisition) and Upstart's fair market value on the date you sell your shares. You will be responsible for paying applicable capital gains tax when you file your tax return.

Educational Resources

You can find more information about stock administration here.