LTIP Retention Rules at Retirement: Guide for P&G Employees Nearing Retirement

Why this matters

As you approach retirement, your LTIP Awards (stock options and RSUs) likely represent a significant portion of your wealth. Understanding the rules around retention can help you avoid forfeiting value.

What grants you keep

Awards granted more than one year before retirement are fully retained and follow original vesting schedules.

Your most recent award (within one year) is prorated based on time worked after October 1. For example, retiring December 31 after an October 1 grant means retaining ~25% of that award.

Critical timing rule

You must remain employed until at least October 28 the year you retire in order to retain any portion of your most recent grant. Leaving earlier results in forfeiture of your most recent awards.

If not retirement eligible

• Vested stock options must be exercised before your last day.
• Unvested options and RSUs are canceled.
• Vested RSU shares remain in your E*TRADE account.

STAR stock options

Al STAR options )vest and unvested) are retained for the full 10-year term, regardless of exit type, subject to plan rules.

Post-separation logistics

• E*TRADE account continues.
• Bank details are removed after 90 days (payments default to paper check unless updated).

Key planning tips

• Timing around October 1 matters.
• Stay through October 28 to retain a portion of your final grant.
• Retirement does not accelerate vesting.
• Monitor taxes and expiration dates.
• Review your individuakl award agreements.

Bottom line

Small timing decision can materially impact your LTIP value. Review your awards carefully before finalizing your retirement date.