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> Never heard of having to wire taxes as a condition of receiving stock owed to you

Extremely common with ISOs and RSUs. There are consequences for issuers if their options are improperly exercised or RSUs improperly vested.

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Low sample count for me, so I guess I'm lucky I've never seen this. My first thought would be the same as OP's: This smells funny. Generally whenever you have to pay your employer to get paid, something foul is afoot.

The only time I’ve ever heard of it was as an option for people who wanted to keep all the shares and avoid the sell to cover.

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