2024 Shell GESPP

Full Transcript:

Your Shell GESPP is arriving at Fidelity. Let’s talk about what that means for you.

First, let’s cover the basics. In 2024, you could have contributed up to $6,335 into the Shell Group Employee Stock Purchase Program. You then get a 15% discount off of the closing price of either the first day of the year, or the first trading day of the following year. Now, in this case, the stock was lower on January 2nd of 2025 versus 2024. So, therefore, you get 15% off of $63.10, meaning you are purchasing your Shell shares at $53.64 per share.

Now, if you maxed that out at $6,335, you will then have purchased 118 shares at a purchase price of $53.64. Now the stock is worth $63.10. So, you have an immediate gain of $1,116. Now this gain is a taxable event, and because it is a taxable event, Shell will withhold some shares for taxes. So, we’re going to assume that Shell withholds five shares for taxes. The exact amount they withhold for you will depend on your individual tax situation. Now, with these five shares withheld, you are now left with 113 shares in your Fidelity account.

We’re going to assume that the price stays at $63.10. So, you now have $7,130 worth of shell stock at Fidelity that you didn’t have a couple of days ago.

Now there’s two important considerations. First, it’s really important to remember that this is a taxable event. So, therefore this $63.10 is your cost basis. When you sell the stock, the difference from that $63.10 is what you are taxed on.

Next, you’re going to want to consider what do you do with a $7,130 of Shell stock? Do you keep it or do you sell it? Since this $63.10 is your cost basis, it’s likely that the stock hasn’t moved a lot, and taxes are not a primary consideration for keeping or selling the stock. Instead, you should really ask yourself, if I didn’t already own $7,100 of Shell stock, and I had $700 of cash in the bank, would I go out and buy $7,130 worth of Shell stock? How you answer that question should really help you determine whether or not to keep or sell this stock. I hope you found this video valuable, and if so, please like it and share it with your colleagues.