Accenture RSU Plans Details
Accenture’s salaries aren’t as high as the Big 4 and other private consulting firms, but the multiple Accenture RSU plans can add up.
Restricted share units (RSUs) are opportunities to receive stock that is awarded, granted, and vests if the receiver meets all requirements.
As you get into leadership roles at Accenture, compensation focus switches from salary to equity accumulated with Accenture RSUs .
Types of Accenture RSU plans
Unlike other companies who give out RSUs to almost everybody, Accenture designates their equity plans to senior leadership only.
Here’s an overview of the various Accenture RSU plans:
A. Equity Award RSUs
The Accenture equity award RSUs are given as part of the annual review process to Accenture leadership: Senior Manager, Associator Director, and Managing Director.
Equity awards are the only way for Senior Managers and Associate Directors to receive equity compensation, outside of any given to external hires at these levels.
Equity awards are announced or “awarded” as part of the annual review process as a dollar amount. This dollar amount is converted into shares on the following January 1st based on the Accenture stock price that day.
The January 1st date is when the RSU is “granted” and kicks off the timeline for you to receive the shares when they “vest”.
The Accenture equity award RSU grant takes three years to fully vest, with 1/3rd of the grant vesting each year. If you are over age 50, it moves to 1/3rd and 2/3rds the second year, and over age 55 awards vest in one year.
If that’s not a sign for what Accenture considers “old”, I don’t know what is!
If you received an equity award in November 2020, it was granted on January 1st, 2021, and you’ll receive 1/3rd vest each of the following years on January 1st (2022, 2023, 2024).
B. New Managing Director RSU
The new Managing Director grant is the major reward for reaching Accenture’s top level.
The new MD RSU is awarded upon promotion and granted on January 1st of the following year.
The grant takes five years to fully vest, and you receive the full amount at once. The bad part is you also lose it all if you don’t meet the five-year requirements.
C. VEIP RSU
The VEIP RSU is awarded to Managing Directors who participate in the Voluntary Equity Investment Program and fulfill the program requirements.
A bonus 50% RSU grant of the total stock purchased throughout the VEIP program year awards as a grant, which vests two years after the RSU award is granted.
The VEIP RSU is granted on January 5th of the following program year, and MDs should maximize the 30% contribution if they can manage through the cash flow challenges.
How are Accenture RSUs taxed?
While RSU grants might feel like free money when they finally vest, unfortunately, Uncle Sam gets a big chunk of it.
The Accenture RSU plans in the United States are taxed as income when the stocks vest. Other countries tax them differently.
There are no tax responsibilities when they’re awarded or granted in the early years; instead it all stacks up at the end when they vest.
This can have huge tax implications, especially when the new MD RSU vests.
Tax and cash flow planning become particularly important at this point, because this isn’t something you want to go into without a plan.
