Performance related Share Options…help on Sell to Cover

I have some shares vesting in March.

I have an option to “sell to cover”, or “sell all”.

Am I right in thinking Sell to Cover puts them into a holding account for me to decide what to do with later, while Sell All will just sell them outright and give me the proceeds?

and the ‘cover’ is what re: taxes and charges?

So on my stock plans through e-Trade sell to cover sells enough shares to cover PAYE taxes etc! The rest of the shares are yours to sell or keep.

As above, you are correct. Sell to cover will cover the future income tax liability. Sell all will probably pay you via payroll with PAYE deductions. What you choose will depend on the success or otherwise of your company. If it’s beating the FTSE, all good, otherwise into a tracker ISA. Or a new bike of course!

Sell to Cover was the only choice we had. It was a bit of a shock, as it left you with about half of the shares you’ve been awarded. The recruitment guy didn’t mention that when he was describing the value of the package.

You’ll pay tax on them at your marginal rate at the market price at point of vesting. Sell to cover will automatically sell enough to cover the income tax liability. This may or may not be paid to HMRC automatically via PAYE.