Leaving Shell – PSP

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Full Transcript:

I have a lot of PSP. Will I lose them when I leave Shell?

Let’s continue talking about leaving Shell, and review what happens to your Performance Share Plan, your PSP. How you leave Shell matters, especially when it comes to your PSP. If you resign or get fired, you will lose all unvested shares. The only PSP you get to keep are the shares that are already in your Fidelity account, and have already vested.

Now, if you leave with a severance or retire, it’s a much more favorable outcome. Your PSP shares then vest at the normal schedule and you get a prorated amount of those shares. These shares are still subject to the performance factor as well. Let’s illustrate this with a hypothetical example. Let’s use John. John received PSP in 2022, ’23, and ’24, and then he leaves Shell in October of 2024.

In 2022, John was awarded 800 shares of PSP. Now, in 2023, he got the same 800 share amount, and then in 2024, he was awarded 600 shares. Now, let’s look at his 2022 award, assuming he leaves in October of 2024. Since he leaves in October, he gets 31 months of service out of the three years. So we prorate the 800 shares, which means he’ll get 689 shares before the performance factor is applied. Now, of course, this still vests three years later, so he will get this in February or March of 2025.

Now we continue and say, in his 2023 award. He, of course, gets that three years later, in March of 2026. And we do the same formula. In this case, he’s worked 19 months out of the three-year period. Therefore, he’ll get 422 shares.

Now, lastly is his 2024 award. Of course, with this award, he only worked seven months out of a three-year period. Therefore, he’ll only get 116 shares when the 2024 award vests in 2027.

Now, I encourage you to check the latest Shell leaver guide, your severance package, and your Equate Plus regarding your unique situation. I hope you found this video helpful and useful so you can make an educated and informed decision when it’s your time to leave Shell. Please continue to share these videos on social media and share them with your colleagues to help them out.