Leaving Shell – GESPP

Full Transcript:

What happens to my GESPP when I leave Shell?

Let’s continue chatting about leaving Shell and review what happens to your Global Employee Stock Purchase Plan, your GESPP. With GESPP, it does not matter whether you resign, get a severance, or retire. Now, be careful because this is not the same case with restricted stock like PSP.

First, let’s talk about what happens to the shares that you already have in Fidelity. The shares that are in your Fidelity account have been purchased through previous years GESPP are yours to keep. When you leave Shell, there is no impact to these shares.

Now, let’s talk about your current year contributions. In 2024, you can contribute up to $6,335 to the GESPP program. Now, when you leave Shell, your contributions to GESPP stop when you leave payroll. However, the money you’ve already put in throughout the year, you then have two options for. First is the default option. You can leave the money in there, and in the following January, you will purchase Shell shares with those funds at the same discounted price. The other option is to pull the money out. You can request a 100% refund of your current year of contributions. Now, by doing so, you will forgo future share purchases.

So, what should you do when you expect to leave Shell? Consider maxing out your GESPP in the first part of the year so that you can get the full benefit.

I hope you find these videos helpful, and if so, please share them with your colleagues or like them on social media. Also, please stay tuned for my next video, where I’ll talk about leaving Shell and your PSP.