Skip to main content
Home
New to Okta

Main navigation

  • Eligibility + Enrollment
    • Eligibility
    • Enrolling and Making Benefits Decisions
    • Making Changes to Your Benefits
  • Health + Wellness
    • Mental Health Support (Modern Health)
    • Kaiser Medical
    • Blue Shield Medical
    • Health Savings Account
    • Healthcare Plan Premiums
    • Rightway Healthcare
    • One Medical
    • Dental
    • Vision
    • Wellness Programs
    • OktaFIT
    • Healthcare Glossary
  • Financial Benefits
    • Gradifi FinancialCore
    • 401(k) Plan
    • Flexible Spending Account (FSA)
    • Life/AD&D Insurance
    • Disability Coverage
    • Business Travel Accident Insurance
    • Personal Travel Assistance
    • Auto and Home Insurance
    • Pet Insurance
  • Community
    • Okta People First Culture
    • Our Culture of Recognition
    • Diversity, Inclusion + Belonging
    • Okta for Good
  • Career
    • New to Okta
    • Learning and Development
    • Job Opportunities
    • Your Performance
    • Leaving Okta
  • Pay + Incentives
    • Pay + Incentives Overview
    • Base Pay
    • Cash Incentive Bonus Program
    • Long-Term Incentives (RSUs)
    • Employee Stock Purchase Plan
  • Time Off
    • Flexible PTO
    • Parental Leave
    • Personal Leave
    • Other Leaves
    • Volunteer Time Off
    • Holidays
  • Everyday Living
    • Carrot Fertility and Adoption Services
    • Caregiver Resources
    • Bump Boxes
    • Employee Experience Marketplace
    • Identity Theft
    • Legal Assistance
    • Commuter Benefits
    • Cell Phone/Internet Reimbursement
  • Resources
    • Who to Contact
    • Mobile Apps
    • Videos
    • Documents and Forms
New to Okta

Breadcrumb

  1. Home
  2. Pay + Incentives
  3. Long-Term Incentives (RSUs)

Long-Term Incentives (RSUs)

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 grantsOkta grants equity at the company’s discretionOkta’s equity grants are made in the form of Restricted Stock Units (RSUs)When you own your RSUsKeeping track through E*TRADEShow me the money...Key program dates during the year
Eligibility for equity grantsOkta grants equity at the company’s discretionOkta’s equity grants are made in the form of Restricted Stock Units (RSUs)When you own your RSUsKeeping track through E*TRADEShow me the money...Key program dates during the year

Eligibility for equity grants

Employees are eligible to receive equity grants as a new hire, then annually.

You will also be eligible for an off-cycle equity grant if promoted to a new level or role with Okta.

Also, you must not have engaged in conduct inconsistent with ethical or other performance standards prior to a grant.

Back to top

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.

For promotions, Okta makes employee equity grants each quarter, on or around March 15, June 15, September 15, and December 15 each year.

On an ongoing basis, your annual equity grant is made on or around March 15.

Back to top

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.

Back to top

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 or promotion 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.

Back to top

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.

Back to top

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
25% vested (55 RSUs)
September 15, 2022 and
next 11 quarters
6.25% vest per quarter
(13-14 RSUs per quarter)

Back to top

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

Promotion equity grants

  • Promotion date: December to February
    • 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
  • Promotion date: March to May
    • Share price calculation: May 1 to 31
    • Approximate grant date and vesting commencement: June 15
    • Approximate E*TRADE notice of new grant: July 7
  • Promotion date: June to August
    • Share price calculation: August 1 to 31
    • Approximate grant date and vesting commencement: September 15
    • Approximate E*TRADE notice of new grant: October 7
  • Promotion date: September to November
    • Share price calculation: November 1 to 30
    • Approximate grant date and vesting commencement: December 15
    • Approximate E*TRADE notice of new grant: January 7

Back to top

Related Content
Base Pay
Your Performance
Cash Incentive Bonus Program
Employee Stock Purchase Plan

Welcome!

Okta’s total rewards connect eligible employees and their family members to a constantly evolving portfolio of plans, services, and support for meeting their changing needs. Check out the links below to learn more and make the most of your total rewards. Get started below.

Learn more about Okta

Contacts

E*TRADE

Long-Term Incentives (RSUs) and Employee Stock Purchase Plan (ESPP)
800-838-0908
Website
  • Eligibility + Enrollment
    • Eligibility
    • Enrolling and Making Benefits Decisions
    • Making Changes to Your Benefits
  • Health + Wellness
    • Mental Health Support (Modern Health)
    • Kaiser Medical
    • Blue Shield Medical
    • Health Savings Account
    • Healthcare Plan Premiums
    • Rightway Healthcare
    • One Medical
    • Dental
    • Vision
    • Wellness Programs
    • OktaFIT
    • Healthcare Glossary
  • Financial Benefits
    • Gradifi FinancialCore
    • 401(k) Plan
    • Flexible Spending Account (FSA)
    • Life/AD&D Insurance
    • Disability Coverage
    • Business Travel Accident Insurance
    • Personal Travel Assistance
    • Auto and Home Insurance
    • Pet Insurance
  • Community
    • Okta People First Culture
    • Our Culture of Recognition
    • Diversity, Inclusion + Belonging
    • Okta for Good
  • Career
    • New to Okta
    • Learning and Development
    • Job Opportunities
    • Your Performance
    • Leaving Okta
  • Pay + Incentives
    • Pay + Incentives Overview
    • Base Pay
    • Cash Incentive Bonus Program
    • Long-Term Incentives (RSUs)
    • Employee Stock Purchase Plan
  • Time Off
    • Flexible PTO
    • Parental Leave
    • Personal Leave
    • Other Leaves
    • Volunteer Time Off
    • Holidays
  • Everyday Living
    • Carrot Fertility and Adoption Services
    • Caregiver Resources
    • Bump Boxes
    • Employee Experience Marketplace
    • Identity Theft
    • Legal Assistance
    • Commuter Benefits
    • Cell Phone/Internet Reimbursement
  • Resources
    • Who to Contact
    • Mobile Apps
    • Videos
    • Documents and Forms
Privacy Policy & Legal Disclaimer © 2022 Okta, Inc. All Rights Reserved. Various trademarks held by their respective owners.