How performance awards work
Follow the journey of a typical award.
Accept your award.
Wait for the award to vest (adjusted for performance)
Your award pays out after taxes are withheld.
The payout is now yours. Let Fidelity help you plan.
Receiving a performance award from your company is a big deal—congratulations! Performance awards are a form of equity compensation that pays out in shares or cash after a specified vesting (or waiting) period, including any adjustments based on performance goals.
Accepting your award and opening your account
To accept the award and make it officially yours, go to Fidelity NetBenefits®. If you're new to Fidelity, you'll be asked to create a username and password and then open a Fidelity brokerage account (the Fidelity Account®) when you accept your award. If you already have an eligible account with us, we'll link your award to that account.
Tracking your award value
The value of your award may be based on the share price of your company's stock or on a specific amount of cash. Go to NetBenefits to see how much your award could be worth. Your company may adjust this value, depending on individual and/or corporate performance parameters.
Receiving your payout
Your award pays out after the vesting date—go to NetBenefits to find out when that happens. The company may adjust the final payout based on the achievement of performance goals.
Managing your payout
Your cash or shares will pay out to your brokerage account. To protect your assets, consider adding a beneficiary to your account. Easily sell some or all of your shares and link your bank account to access cash.
Understanding your taxes
Your award is considered taxable income when it pays out, and your company may withhold a portion of the payout to cover the taxes due. If your award pays out as shares, you may also be subject to capital gains taxes when you sell the shares. Use Fidelity's tax-planning resources to learn more about taxes, when they're paid, and how to file your tax return.
Getting help
We'll stay in touch through the full life cycle of your award and let you know when there's action to take. Head to your Profile page to confirm your contact information is correct, so you never miss an update or time-sensitive communications.
Make the most of your Fidelity brokerage account
When your award pays out, we'll deposit the shares or cash into your brokerage account—but you don't have to wait until then to take advantage of the account and its many benefits.
With this account, you can manage your stock plans, transfer cash to your bank, trade shares (and other financial assets like bonds and mutual funds), and access Fidelity's financial tools and resources.
Your Stock Plan Resource Center
The Stock Plan Resource Center provides the help and education you need to understand how your equity compensation works, including taxes, selling and managing shares, and planning for your financial goals and priorities.
Resources
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