The takeaway
Here’s your true opportunity to share in the value you’re building—aligned directly with our shareholders’ interest in Okta’s long-term success. Most employees are eligible for annual equity grants. This is a form of non-cash compensation that gives you a piece of company ownership.
Eligibility for equity grants
Employees are eligible to receive equity grants as a new hire, then annually.
Also, you must not have engaged in conduct inconsistent with ethical or other performance standards prior to a grant.
Want to confirm your eligibility for equity grants? Get in touch with your People Business Partner or go to the Okta Stock Administration Wiki to find additional contact information.
Okta grants equity at the company’s discretion
As a new hire Okta makes employee equity grants each month, on or around the 15th of the month following your date of hire. Depending on your hire date, your grant will begin vesting March 15, June 15, September 15, or December 15.
On an ongoing basis, your annual equity grant is made on or around March 15.
Okta’s equity grants are made in the form of Restricted Stock Units (RSUs)
RSUs are a form of equity compensation issued by Okta.
Okta grants RSUs at no cost to you.
For each grant, Okta sets a grant price based on the monthly average trading price for the month prior to the grant.
We apply the grant price to your individual grant value, which determines the number of RSUs you receive. See the example below.
When you own your RSUs
Your RSUs vest over a four-year period, while you’re employed with Okta.
RSUs have no value until vesting is achieved.
At vesting, the RSUs are “settled” in shares of Okta’s Class A common stock. As a result, if you satisfy the vesting period, you will receive shares, which will always have some value.
For new hires, 25% of a grant’s RSUs vest one year from the vesting commencement date. The remaining 75% vest evenly over the following 12 quarters. For annual grants, vesting occurs evenly over the following 16 quarters.
Vested RSUs are yours to keep without any conditions.
On the flipside, if you leave Okta before full vesting in a given equity grant, you forfeit your unvested RSUs.
Keeping track through E*TRADE
You can keep track of your grants and the potential value of your RSUs through E*TRADE.
You’ll need to create an E*TRADE account at your first equity grant, and you’ll see your RSUs on E*TRADE by the 7th day of the month following the grant date.
Show me the money...
Here’s an example of how Okta sets the price for an RSU award, grants it to you, and how it vests. In this example, we assume this grant was made for a new hire who started March 15, 2021, and received a $50,000 new hire grant.
| Grant value | $50,000 The amount was included in her offer letter. |
| Share price | $225.30 This was the monthly trailing average share price between March 1, 2021–March 31, 2021. |
| Number of RSUs in the grant | 222 Calculated using the grant value divided by the share price, and rounded up: $50,000 (grant value)/$225.30 (share price) = 222 |
| Vesting commencement date | June 15, 2021 RSUs begin vesting from this date. |
| Vesting schedule |
June 15, 2022 |
Key program dates during the year
New hire equity grants
- Share price calculation: Month of hire
- Approximate grant date: 15th of month following date of hire
- Approximate E*TRADE notice of new grant: by 7th of month following grant date
- Vesting commencement date:
- December to February new hires: March 15
- March to May new hires: June 15
- June to August new hires: September 15
- September to November new hires: December 15
Annual equity grants
- Share price calculation: February 1 to 28/29
- Approximate grant date and vesting commencement: March 15
- Approximate E*TRADE notice of new grant: April 7