Short answer: refresh grants can make employer stock grow faster than you realize, especially if you hold every vest.
A refresh grant feels like future compensation. That is true before it vests. After it vests, it becomes part of your portfolio.
This shift is easy to miss.
Why refresh grants feel harmless
Employees often treat refresh grants as a reward, not a risk.
The thinking sounds like this:
"I did not buy these shares. They came from work."
That framing is understandable, but it can be misleading. Once shares vest, they are yours. Keeping them is the same as choosing to hold employer stock with your own wealth.
How concentration builds
Concentration can build even if you never buy a single share.
It happens like this:
- ✓Initial grant vests.
- ✓You hold the shares.
- ✓Refresh grant arrives.
- ✓More shares vest.
- ✓The stock rises.
- ✓You keep holding because selling feels unnecessary.
After a few years, employer stock can dominate your net worth.
That is not because you made one big risky decision. It is because you made several small non-decisions.
Count future exposure
When measuring concentration, do not stop at vested shares.
Also include:
- ✓Unvested RSUs expected to vest.
- ✓Refresh grants already awarded.
- ✓Expected refresh grants if they are likely.
- ✓Salary and bonus dependence.
- ✓Career exposure to the same company.
This gives a better view of how tied your financial life is to your employer.
Build a vesting rule
Refresh grants are easier to manage when you set a rule before shares vest.
Examples:
- ✓Sell a fixed percentage of every vest.
- ✓Sell enough to keep employer stock below a chosen net-worth threshold.
- ✓Sell shares tied to near-term expenses.
- ✓Hold only the amount you would willingly buy today.
The rule can change over time, but it should exist.
What to ask during compensation review
When you receive a refresh grant, ask:
- ✓How much will vest in the next 12 months?
- ✓What is my total employer-stock exposure after those vests?
- ✓What happens if the stock falls before vesting?
- ✓Do I need the future cash for a planned goal?
- ✓What will I sell automatically?
These questions turn the grant from a headline number into a plan.