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  1. #1
    Join Date
    Jul 2017
    Posts
    2

    Question Restricted Stock Units (RSUs) Required by Employment Contract Were Not Issued

    On May 10th, 2013 I had signed my employment offer with my employer, which states that I would receive Restricted Stock Units (RSUs). Exact wording from offer letter is :"We will recommend to the <Company> Board of Directors ("Board") that at a meeting following commencement of your employment, you be granted XXXX restricted stock units that, upon vesting, convert to an equal number of shares of Autodesk common stock. The restricted stock units do not have a purchase price but are subject to taxation upon vesting..."
    I recently voluntarily quit in March 2017 but hadn’t received any RSUs. I have talked to the HR and they are willing to negotiate and are offering a lump-sum amount in exchange of a release of claim. The lump-sum amount is significantly lower than the market price of the RSUs owed to me. Their take is that the time is past the statute of limitation and they are doing this as a goodwill measure.

    Do I have a case to take them to court?

    I live in Toronto, Canada and worked for the company based in Toronto, Canada.

    <Company> is the name of my employer.
    XXXX is the count of the RSUs.

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Restricted Stock Units (RSUs) Required by Employment Contract Were Not Issued

    This is a U.S. forum, and your question is one of Canadian law. You should consult a Canadian legal resource or Canadian lawyer.

  3. #3
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Restricted Stock Units (RSUs) Required by Employment Contract Were Not Issued

    were the RSU's ever confirmed at the BOD meeting? Sounds like they were possibly not since the letter only says they were being recommended. Agree with MrKIA, you need to consult an attorney familiar with Canadian law to see if the letter rises to a level of a contract and whether you have legal recourse. The lump sum may be the best you can do.

  4. #4
    Join Date
    Jul 2017
    Posts
    2

    Default Re: Restricted Stock Units (RSUs) Required by Employment Contract Were Not Issued

    I am not sure about that. But I am guessing that since the HR did not mention that the BOD denied the grant, the grant was approved. Again, this is speculation. But the fact that they have immediately offered a settlement makes me think that there is more to it. They could have easily denied my claim.

    I have one more question additional question.
    If the company's failure to provide the RSUs to me constitutes a breach of contract, when does the breach occur -- at the time the contract was signed or at a later date. I am struggling with when the clock for statute of limitations begin because I might be past it if the breach occurs at the time the contract was signed. But if it happens, say, at the time I quit, since the contract does not spell out when the RSUs would be delivered to me, then I might still be within the timeframe well within the statute of limitations here.

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