Meta RSU India guide: Schwab Equity Awards, monthly disbursement, PSU multipliers, and the dividend that started in 2024

A senior engineer at Meta India in their fourth year opens their offer letter for the next refresh grant cycle. The grant amount shows $300,000 in PSUs (Performance Stock Units). Their previous annual RSU grants have been entirely regular RSUs — a known amount that vests on a known schedule. PSUs are different. The $300,000 is the target value. Depending on how Meta performs against the metrics set at the start of the performance period, the actual vest value could be anywhere from $195,000 (0.65× multiplier) to $600,000 (2.0× multiplier) by the time the units vest.

For an Indian resident, this creates a planning problem unique to Meta among the major US tech employers: you can't compute next year's perquisite tax bill in advance with any precision. You can model the 0.65× downside, the 1.0× midpoint, and the 2.0× upside — but the actual number that goes on Schedule S won't be known until vest date. Advance-tax payments during the year need to be estimated; the reconciliation happens at year-end with potential Section 234B/C interest if the estimate was too low.

This article is the Meta-specific RSU + PSU guide. The structural tax framework lives in the 4-article RSU lifecycle series; this article fills in everything Meta-specific — the grant types (RSU + PSU + sign-on), the 25-25-25-25 annual vesting with monthly disbursement quirk, the Charles Schwab Equity Awards Center walkthrough (different broker from Google/Microsoft/Amazon), the PSU performance multiplier mechanics, the Meta dividend that started in Q1 2024 (first time in company history), and the filing errors most common to Meta employees.

Meta's grant types — RSU + PSU + sign-on

Meta uses simpler internal naming than Microsoft but introduces a complication that Google and Microsoft don't have for most engineers: Performance Stock Units (PSUs) for senior individual contributors and managers.

Grant type	Who gets it	Schedule
Sign-on RSU grant	All new hires	25-25-25-25 over 4 years, annual vest with monthly disbursement
Annual Refresh RSU	All employees, annually post-performance review	Same 4-year schedule starting from grant date
PSU (Performance Stock Unit)	Senior IC (E5+) and managers; typically introduced as a portion of the refresh grant	Same 4-year schedule, but vest value multiplied by performance factor (0.65× – 2.0× range)
Special grants	Promotion, retention, or recognition	Schedule varies; typically 4-year vest

Sign-on grants are typically the largest single grant a Meta employee receives. For senior hires (E5/E6/E7), sign-on grants in the $400K-$2M+ range are common. For E4 and below, sign-on grants are smaller but still substantial.

Annual refresh grants are typically smaller than sign-on grants — often 30-50% of the sign-on grant size, scaled to performance and level — and refresh grants start having a PSU component for senior IC levels (typically E5 and above). The exact PSU portion of refresh grants varies by level and year:

Level	Typical PSU portion of refresh grant
E3-E4	0% (RSU only)
E5 (Senior IC)	~25% PSU + 75% RSU (varies)
E6 (Staff)	~50% PSU + 50% RSU
E7+ (Principal+)	~75% PSU + 25% RSU

These ratios shift across years; verify against the most recent compensation guide on Meta's internal Workplace.

The vesting schedule — 25-25-25-25 with monthly disbursement

Meta's standard vesting schedule for both RSUs and PSUs is 25% per year over 4 years, with vests disbursed monthly rather than annually or quarterly.

Specifically: each year's 25% is broken into 12 monthly disbursements (~2.083% per month). So instead of receiving 25% in one lump on the annual anniversary, you receive 1/12 of the year's vest at the end of each month.

No 1-year cliff for most grants. Unlike Microsoft's standard On-Hire grant which has a 1-year cliff, Meta's vests begin from the first monthly disbursement after grant — typically within 30-60 days of grant date.

The monthly disbursement creates 12 vest events per year per active grant. By Year 3 at Meta, a typical engineer with one sign-on grant + 2 refresh grants has 3 concurrent active grants = 36 monthly vest events per year.

Each monthly vest event requires:

• USD vest value at the monthly disbursement date (Meta uses the closing price on a specific date in each month)
• SBI TTBR conversion to INR for India perquisite
• Form 16 reconciliation
• Cost basis tracking for future capital gains

This is structurally similar to Microsoft's density but spread more uniformly across the calendar year (Microsoft is quarterly + ESPP semi-annual; Meta is monthly + no ESPP).

PSU vesting mechanic. PSUs vest on the same 25-25-25-25 schedule, but the number of units that vest at each event is multiplied by the performance factor for that performance period. Performance periods are typically annual, so each year of a PSU grant has its own multiplier:

• Year 1 PSU multiplier: based on company performance in the year prior to vest
• Year 2 PSU multiplier: based on company performance in the year prior to that vest
• And so on

For a PSU grant of 1,000 target units vesting 25% per year:

Year	Target units	If multiplier is 0.65×	If multiplier is 1.0×	If multiplier is 2.0×
1	250	163 vest	250 vest	500 vest
2	250	163 vest	250 vest	500 vest
3	250	163 vest	250 vest	500 vest
4	250	163 vest	250 vest	500 vest
Total over 4 years	1,000 target	650 actual	1,000 actual	2,000 actual

The multipliers can be different for each year — so you might have one year at 1.5×, another at 0.85×, another at 1.2×. The exact metric Meta uses (relative TSR, internal performance metrics, etc.) varies by grant year; verify against your specific grant memo.

India tax implication of PSUs: the perquisite tax is calculated on the actual vest value (post-multiplier), not the target value. If 250 PSUs were targeted and 500 actually vest (at 2.0× multiplier), perquisite tax is on the value of 500 shares, not 250.

Charles Schwab Equity Awards Center — Meta's broker

Unlike Google, Microsoft, and Amazon (all on Morgan Stanley StockPlan Connect), Meta uses Charles Schwab Equity Awards Center. The UX is different; the data is the same.

Login: workplace.schwab.com or schwab.com → Equity Award Center. You may need to set up a separate Schwab login distinct from any personal Schwab brokerage you have.

Account structure: Schwab maintains your "Stock Plan Account" separately from any regular Schwab brokerage account you might open later. The Stock Plan Account holds vested Meta shares and ESPP shares (though Meta has no ESPP, just RSUs and PSUs). When you sell shares from the Stock Plan Account, proceeds can be transferred to a regular Schwab brokerage account or paid out to your bank.

Key navigation:

Section	What's there
Award Overview	Summary of all grants — sign-on, refresh, PSU components, vest progress
Activity	Every vest event, sale, and dividend with dates and amounts
Statements	Monthly account statements + annual summary
Tax Documents	1099-B (sales), 1099-DIV (dividends, if any), 1042-S (foreign withholding)
W-8BEN	Manage your W-8BEN form; renew before expiration

Account number format: Schwab uses an 8-digit account number for Equity Award accounts. Like Morgan Stanley, you'll need this for Schedule FA disclosure.

The annual statement download path: Login → Statements → Annual → Download PDF. For Indian Schedule FA filing, you typically want the period January 1 to December 31 (calendar year). Schwab's default is the most recent 12 months, which may not align with the calendar year — explicitly select the calendar year range.

Tax form release timing:

• 1099-DIV: by January 31 (for US dividends paid that calendar year)
• 1099-B: by February 15 (for sales executed that calendar year)
• 1042-S: by March 15 (the foreign-person withholding form — required for Form 44 FTC)
• ESPP tax summary: N/A (Meta has no ESPP)

The Meta dividend — new in 2024

For most of Meta's history (and the equivalent Facebook era), the company did not pay a dividend. This changed in Q1 2024, when Meta declared its first quarterly cash dividend of $0.50 per share.

For Indian residents holding META shares from RSU/PSU vests, this means:

1. Quarterly dividend events — $0.50/share × shares held on record date
2. US withholding tax at 25% under DTAA with valid W-8BEN; 30% without
3. Form 44 FTC claim required to credit the US WHT against Indian tax liability
4. Form 1042-S issued by Schwab by March 15 of the following year

For a typical L5 holding ~300 META shares by Year 3, the annual dividend is roughly $600 = ~Rs 50,000 at TTBR ~Rs 84. The US WHT at 25% = ~Rs 12,600. India tax on gross at 30% slab = ~Rs 15,120. Form 44 FTC recovers Rs 12,600, leaving net India tax of ~Rs 2,520.

The dividend is small per share but the Form 44 paperwork is still required. Skipping Form 44 because the amount is modest converts the entire US WHT into a permanent loss.

Practical note: The first 1042-S for Meta dividends arrived in March 2025 (for calendar 2024 dividends). Many Meta India employees missed claiming Form 67 (now Form 44) in their first dividend-receiving year because they didn't realize Meta had started paying dividends. If you're filing your AY 2025-26 return and held META shares during calendar 2024, check your Schwab account for 1042-S — it's there.

ESPP — Meta doesn't have one

Worth flagging explicitly: Meta is one of the RSU-only major employers.

Company	RSU + ESPP?
Microsoft	✓ RSU + ESPP (10% discount)
Apple	✓ RSU + ESPP (15% discount, 6-month lookback)
NVIDIA	✓ RSU + ESPP (15% discount, 6-month lookback)
Google	RSU only (ESPP discontinued 2013)
Amazon	RSU only
Meta	RSU + PSU only (no ESPP)

If you previously worked at Microsoft/Apple/NVIDIA before Meta, your ESPP shares from that employer remain in the previous broker account and require separate Schedule FA disclosure under that employer's name.

Four-year worked example: an E5 Indian engineer

This example walks through a typical E5 (Senior IC) Indian engineer who joined Meta India in March 2024. Numbers are illustrative; substitute your own grant size.

Year 1 (FY 2024-25): Sign-on grant only.

Assume sign-on grant of $400,000 in regular RSUs (no PSU component for E5 sign-on grants at this hypothetical company):

• Vests 25% per year = $100,000 in Year 1
• Monthly disbursement = $100,000 / 12 = ~$8,333 per month
• At META average ~$500/share, that's ~16-17 shares per month, ~200 shares for the year
• Total Year 1 perquisite: ~$100,000 = ~Rs 83 lakh (at TTBR ~Rs 83)
• Tax at 30% slab + 10% surcharge (since income > Rs 50L): ~Rs 28-29 lakh

Year 2 (FY 2025-26): Sign-on + Year-1 refresh.

Assume Year-1 refresh grant of $200,000, split as $150,000 RSU + $50,000 PSU target:

• Sign-on Year 2 vest: $100,000 (RSU)
• Refresh Year 1 vest, RSU portion: $150,000 × 25% = $37,500
• Refresh Year 1 vest, PSU portion: $50,000 × 25% × multiplier. If multiplier is 1.0×: $12,500. If 1.5×: $18,750. If 0.65×: $8,125.

For modeling, use the midpoint 1.0× multiplier:

• Combined Year 2 perquisite: $100,000 + $37,500 + $12,500 = $150,000 = ~Rs 125 lakh

But the multiplier could push the actual perquisite higher or lower:

• At 0.65× multiplier on PSU portion: ~$146,125 actual = ~Rs 121 lakh
• At 1.5× multiplier on PSU portion: ~$156,250 actual = ~Rs 130 lakh
• At 2.0× multiplier on PSU portion: ~$162,500 actual = ~Rs 135 lakh

The variance is Rs 14 lakh between worst-case and best-case multiplier scenarios — material for advance-tax planning.

Year 3 (FY 2026-27): Sign-on + 2 refresh grants + first Meta dividend.

Assume Year-2 refresh of $250,000 ($175K RSU + $75K PSU target):

• Sign-on Year 3 vest: $100,000
• Y1 refresh Year 2 vest: RSU $37,500 + PSU 25% × $50K × multiplier = depending on multiplier
• Y2 refresh Year 1 vest: RSU $43,750 + PSU 25% × $75K × multiplier

At all multipliers = 1.0×: total ~$200,000 = ~Rs 167 lakh perquisite

• This crosses Rs 1 crore income → 15% surcharge applies
• Effective tax rate is now meaningfully higher
• Plus ~$600 META dividend = small but Form 44 required

Year 4 (FY 2027-28): Sign-on tail + 3 refresh grants.

Assume Year-3 refresh of $300,000 ($150K RSU + $150K PSU target — PSU portion increases at senior levels):

• Sign-on Year 4 (final): $100,000
• Y1 refresh Year 3: RSU $37,500 + PSU at multiplier
• Y2 refresh Year 2: RSU $43,750 + PSU at multiplier
• Y3 refresh Year 1: RSU $37,500 + PSU at multiplier

Even at 1.0× multiplier on all PSU portions, total perquisite ~$250,000-$280,000 = ~Rs 210-235 lakh. With PSU upside, could be Rs 280 lakh+. Income approaches/crosses Rs 2 crore → 25% surcharge kicks in for income above Rs 2 crore.

This is the Meta E5+ structural pattern: perquisite income compounds aggressively across years because refresh grants stack with the original sign-on, plus PSU upside. Tax planning at this income level requires consultation with a CA who specializes in cross-border + high-net-worth Indian residents.

PSU planning under uncertainty

Because PSU multipliers aren't known until vest date, advance-tax payments need to be estimated. Three approaches Meta employees commonly use:

Conservative approach. Estimate advance tax assuming 1.0× multiplier (midpoint). If the actual multiplier comes in below 1.0×, you may end up with a refund. If above 1.0×, you'll owe additional tax at year-end with possible Section 234C interest for under-payment in earlier installments.

Aggressive approach. Estimate advance tax assuming 0.85× multiplier (slight downside). Minimizes capital lockup in advance tax; tolerates higher risk of 234C interest at year-end reconciliation.

Defensive approach. Estimate advance tax assuming 1.25× multiplier (slight upside). Locks up more capital but avoids 234C interest in upside scenarios.

For a Year-3 perquisite hypothetical of Rs 150 lakh at 1.0×, swinging to 0.65× gives Rs 125 lakh and 2.0× gives Rs 190 lakh. Picking the wrong assumption can leave you Rs 6-12 lakh short on advance tax — material 234C interest.

Recommended approach for first PSU vest year: model both the 0.65× downside and 1.5× upside, pay advance tax at the 1.0× midpoint, and budget for a year-end reconciliation payment if the actual multiplier comes in high. Once you've seen one PSU vest cycle and have an internal sense of how Meta tends to perform against its metrics, refine the estimate for subsequent years.

Form 16 + AIS reconciliation — Meta India specifics

Meta's India entity (Meta Platforms India Private Limited / FaceTime Inc. India arm) handles payroll TDS on the perquisite portion for India-resident employees:

Item	Where it appears
Gross RSU vest perquisite	Form 16 Part B Section B(1)(b)
Gross PSU vest perquisite (post-multiplier)	Same line, aggregated; broken out in Form 12BA
TDS deducted	Form 16 Part A, monthly (because of monthly disbursement)
Detailed breakdown	Form 12BA

Meta India typically uses the SBI TTBR on each monthly disbursement date for the perquisite calculation. If your Form 16 totals don't reconcile with your own Schwab-based calculation, request the TTBR rates Meta India used — sometimes month-end-average vs specific-date TTBR creates small discrepancies.

AIS for Meta employees: Should show aggregate annual perquisite. If you see PSU vests labeled separately from RSU vests (rare but possible), aggregate them under the same Schedule S perquisite line.

Schedule FA for Meta Platforms

For each calendar year when you held META shares:

Field	Value for Meta
Country	2 (United States of America)
Name of Entity	Meta Platforms, Inc.
Address of Entity	1 Meta Way, Menlo Park, CA 94025, USA
Nature of Entity	Foreign Listed Company
Date of Acquisition	Earliest vest date for currently-held shares
Initial Value (INR)	Cost basis at acquisition
Peak Value (INR)	Highest market value during calendar year × TTBR
Closing Value (INR)	Dec 31 value × Dec 31 TTBR
Total dividends received (INR)	Gross dividend × dividend-date TTBR (starting 2024)
Total sale proceeds (INR)	If you sold
Custodian	Charles Schwab & Co., Inc.
Custodian Address	211 Main Street, San Francisco, CA 94105, USA
Account Number	Your 8-digit Schwab Equity Award account number

Single entry for META — there's only one share class.

Watch for old "Facebook, Inc." references in older statements (pre-October 2021 rebrand). The entity is now Meta Platforms, Inc.; use the current name on Schedule FA.

Six common filing errors for Meta employees

1. Filing PSU perquisite at target value instead of actual post-multiplier value. If 250 PSUs were targeted but 500 vested at 2.0× multiplier, perquisite is on the 500 shares, not 250. The 1042-S and Schwab statement reflect the actual amount.

2. Missing the Meta dividend in 2024+ filings. Many Meta employees overlooked the first-ever dividend that started Q1 2024. Verify your Schwab account for dividend entries and 1042-S.

3. Monthly disbursement entries aggregated as a single annual vest. Meta's monthly disbursement produces 12 separate vest events per year per grant. Each requires the SBI TTBR on its specific monthly disbursement date. Aggregating as one annual vest at year-average TTBR is technically incorrect — though the difference may be small in steady FX environments.

4. PSU performance period confused with vest period. PSUs have a performance period (during which Meta's metrics determine the multiplier) and a separate vest period (during which the units distribute). Tax timing is the vest date, not the performance-period-end date.

5. Charles Schwab vs Schwab personal brokerage confusion. The Equity Award Center is separate from any regular Schwab brokerage. Account numbers, statement formats, and tax forms are different. For Schedule FA, use the Equity Award Center account number.

6. Sign-on grant timing mistakes. Meta typically grants the sign-on RSU on the first day of employment with vesting starting from that date — not the offer-letter signing date. The first monthly disbursement usually occurs within 30-60 days of the start date.

RSU concentration — and what to do about it

By Year 3 at Meta, the typical E5+ engineer holds 40-60% of their liquid net worth in META stock. By Year 4 with multiple refresh grants stacked, this commonly reaches 60-75%.

The standard Schwab Equity Award account doesn't let you diversify within the same account — you can hold META, sell and transfer proceeds to a regular brokerage account, or remit to India. The sell-and-remit path triggers separate LRS + FEMA considerations and converts the asset out of the foreign-equity bucket.

Rovia is built specifically for this problem. Transfer your vested Meta shares from Schwab Equity Awards directly to Rovia (in-kind transfer, no taxable event), then redeploy into diversified US ETFs or other single stocks while keeping the assets in the foreign-equity bucket and the original LRS treatment intact.

Next steps

For filing your Meta RSU + PSU income:

1. How RSU double-taxation actually works — the 3-event framework
2. Reading your Morgan Stanley StockPlan Connect statement — field-by-field translation (Schwab has the same field structure with different labels — most concepts transfer)
3. From vest to ITR-2: the complete 12-step workflow — execution layer
4. RSU vesting while in US vs India — if you transferred from Menlo Park / Seattle back to India
5. Schedule FA disclosure guide — Schedule FA deep dive
6. Schedule FA wizard — V1 supports Morgan Stanley; Schwab support in development

Other employer-specific guides in this series:

• Google (Alphabet) RSU India guide — the 33-22-25-20 vesting split
• Microsoft RSU India guide — On-Hire + ASAs + ESPP at 10%
• Amazon RSU India guide (in progress) — 5-15-40-40 back-weighted
• Apple RSU India guide (in progress) — semi-annual vests, ESPP at 15%
• NVIDIA RSU India guide (in progress) — Schwab, quarterly vest, PSU appreciation

This article reflects Meta's 2024-2026 grant practices. PSU multiplier ranges, performance metrics, and the exact PSU portion of refresh grants vary by year and level — verify the specifics against your grant memo and the current equity guide on Workplace before filing. We refresh this guide annually after each Budget; the framework holds across rate and policy changes.