Company Bought Out What Happens To My ESOP

[Guest Armondo2006]

I worked for a company through college full time, and in the process earned shares based on the companies ESOP. After finishing college I left that company and found out soon after that the company (which was privatley held) was bought out by a larger corporation. Everyone that I knew that was vested in the original company's ESOP was compensated for the amount of shares that they owned. I wasn't compensated, so my question is "Am I owed any compensation because I was vested with the original companhy?" or "Am I SOL????" Any help or opions on this matter will be greatly appreciated.

[Guest b2kates]

yes if you were vested you must be compensated.

[david rigby]

b2kates is correct. However, perhaps his use of "vested" and your use of "vested" are not equal. Vesting is generally controlled by the terms of the plan document. Many plans use a vesting schedule that is zero percent for the first 5 years, then 100%. Just as important, a "year of service for vesting" is often defined in the plan document as a plan year with at least 1000 hours worked. (This is a common definition. Not all plans use this.) Thus, you may have been awarded some stock for one or more years, but may not have met the plan terms for vesting. In other words, follow the terms of the plan document.

Only you and the company know your work history. Check it out.