FUTU HK Help Center-ESOP system Q&A (For Tencent employees only)
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ESOP system Q&A (For Tencent employees only)

1. What is the difference between stock receiving and data management?

A: Previously only vested stocks constituting net proceeds could be sent to Futu. Since Futu has implemented data management, employees can directly search for their company's grants details at Futu.


2. Can Futu receive option data?

A: Yes, since Futu has implemented data management, employees can search for both restricted stock unit (RSU) and option data through Futu’s system. Options can be exercised directly at Futu, and proceeds from exercise will be credited to the account at Futu.


3. Does Futu charge for RSU data management and RSU vesting? What about options?

A: Futu does not charge any fees for data management or RSU vesting at all! Fees for RSU vesting will be charged by the trust. A HK$100 fee will be charged for each exercise of options at Futu.


4. What is the difference between RSU vesting and option vesting?

A: When RSUs are vested, the proceeds will be actually credited to the account, and employees do not need to do anything; after options are vested, employees might need to exercise them. The exercise time is up to the employees. Proceeds will be generated only after options are exercised.


5. Can I choose Futu for my unexercised options at the BOC?

A: Yes, if you choose Futu, the data of your unexercised options will be found at Futu in the form of vested options. Those options can be exercised at Futu.


6. Why is the grants data at Futu not equal to the total amount granted to me by my company?

A: The data at Futu does not include the stocks or options that have been vested or exercised at BOC International or Computershare. Only the stocks and options that employees can obtain at Futu in the future are included.


7. Why are only shares to be vested deposited?

A: Since the vested shares have been credited to the personal account, the company cannot update and process them. The remaining shares will be vested, taxed and credited to the account through Futu’s platform.

For example: If 120 shares were granted on July 6, 2016, and 30 shares were vested on July 6, 2017, then 90 shares will be deposited into the account at Futu, and there is no change in the vested 30 shares which can be searched for in the account at the previous brokerage.


8. What do I need to do after data is stored?

A: You don’t need to do anything. Shares will be automatically credited to the account within 5-10 business days after being vested. Employees can search for incentive data and vesting progress by going to Trade > long-term incentive portal in the Futubull app.


9. How is the estimated stock value for RSUs calculated?

A: The estimated stock value represents the value of the stocks that have not yet been vested to the employees. Estimated Value = Number of Shares to Be Vested * Previous Close.


10. How are the value of exercisable options and the value of options to be vested calculated?

A: The value of exercisable options represents the immediate proceeds that can be obtained by exercising the options during the window period. Value of Exercisable Options = Number of Exercisable Options * (Previous Close - Option Cost). When there are multiple numbered options, a sum will be calculated.

The value of options to be vested represents the value of the options that have not yet been vested to the employees. Value of Options to Be Vested = Number of Options to Be Vested * (Previous Close -  Option Cost). When there are multiple numbered options, a sum will be calculated.


11. How are withholding taxes on option exercise and RSU vesting calculated?

A: Proceeds from option exercise and RSU vesting are subject to individual income tax. The company is obliged to withhold taxes for the account of employees. Withholding taxes are calculated in the same method as salary. Please refer to the finance and tax document No. 35.