The vesting period is the period of time between when you are issued shares and you take full ownership of the shares (e.g. restrictions removed). This is very common with equity compensation. A company will award shares of stock on a given date, but they are not able to be sold or traded until the vesting period has elapsed.
Shares purchased through the SPP have a 1-year vesting period. You purchased the shares with your commission income and you will keep these shares regardless of whether you remain with Real. However, you cannot transact shares until they have vested over a period of 1-year from the date they were issued to you. This is because we want agents to invest in the long-term growth of the company and not sell shares immediately after they receive them.
SPP Bonus Awards, Capping Awards, and Attracting Shares are also subject to a vesting period, according to the programs described in How do I earn equity (stock)? For these programs, you will need to remain with Real for a period of time after the stock was issued to fully vest the stock (own the shares outright). If you leave Real before these shares have fully vested they will be forfeited.
Here is a summary:
- SPP (1-Year Vesting Period): For stock you purchased through the SPP, there is a one year vesting period. One year after issuance, you will take possession of the shares and be able to transact (or receive an equivalent cash value). These shares are not subject to forfeiture if you leave Real.
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SPP Bonus Awards (1-Year Vesting Period): SPP Bonus Awards (the amount Real matches) have a 1 year vesting period. You must remain licensed with Real for one year (from the issue date) to fully vest (receive) these stock awards. If you leave Real before these shares vest, you will forfeit these shares.
- Stock Award for Capping (3-Year Vesting Period): Stock awarded for capping has a 3-year vesting period. You must remain licensed with Real for three years (from the issue date) to fully vest (receive) these stock awards. If you leave Real before these shares vest, you will forfeit these shares.
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Elite Agent Production Award & Elite Agent Cultural Award (3 Year Vesting): All shares in the Elite Agent program have a 3-year vesting period. You must remain licensed with Real for three years (from the issue date) to fully vest (receive) these stock awards. If you leave Real before these shares vest, you will forfeit these shares.
- Attracting Shares (3 Year Vesting Period): Stock awarded for attracting has a 3-year vesting period. You must remain licensed with Real for three years (from the issue date) to fully vest (receive) these stock awards. If you leave Real before these shares vest, you will forfeit these shares.
Your Shareworks account will show the date the stock was granted and when it will vest.
SPP Example:
- On January 15th, 2022, you close a transaction with $10,000 GCI. Because you are opted into the SPP at this time, Real sets $500 aside to purchase stock via SPP.
- The shares are purchased on January 31st, 2024 (always the end of the month).
- Your shares will be awarded by February 15th, 2024, and will be visible in your Shareworks Account.
- These are your shares to keep.
- However, you will not take full possession (vest) these shares until February 15th, 2025 - one year after they were purchased. This is the vesting period. You will not be able to transact (sell, trade, move)
SPP Bonus Awards
- You receive $100 of stock via the SPP Bonus Award in January.
- Your shares are awarded by February 15th, 2024 and you receive the shares in your Shareworks Account.
- These shares are not vested yet. You will not own them outright until the vesting period is satisfied.
- On February 15th, 2025, the vesting period is satisfied and you own the shares outright.