Make stock sales effortless with the Schwab Automated Employee Trading Plan™.
The Schwab Automated Employee Trading Plan is a complimentary, optional plan that gives you the freedom to sell stock—even when trading windows are closed—while staying compliant with Securities and Exchange Commission (SEC) rules. Everything in this 10b5-1 trading plan is automated, so you can set up your plan in minutes and let Schwab handle the rest. No scrambling. No second-guessing. Just confidence and peace of mind as you work toward your goals.
Selling company stock on easy mode
Find out how the Schwab Automated Employee Trading Plan makes handling your equity compensation simple and stress-free.
Simplicity
Embrace easy. Once you set up your trading plan, it sells your company stock automatically. Even during blackout periods and when trading windows are closed, your plan continues to effortlessly turn your company shares into cash you can use.
Predictable cash flow
Automatic trades help you convert stock into regular cash you can immediately put toward savings, expenses, or your next goal. A set schedule helps you avoid emotional decisions and creates a steadier path for funding your financial priorities.
Peace of mind
Trade legally and confidently. Your plan runs quietly in the background with no compliance worries because it was set up before you had any insider information.
Set it up. Then let it run.
Enroll
Sign up during your company's enrollment window to confirm eligibility and lock in your plan.
Plan
Choose which shares to sell, how often, and on what schedule.
Cool off
Wait the required period before trades begin—this built-in pause keeps your plan compliant.
Trade
Schwab sells your shares automatically on schedule, and proceeds go straight into your Schwab account.
Your stock. Your plan. Your peace of mind.
Get a more in-depth look into how the Schwab Automated Employee Trading Plan works to see whether it's the right fit for you.
Frequently asked questions
The Schwab Automated Employee Trading Plan automatically sells your company shares on a regular schedule, based on an executed Employee Trading Plan Agreement. It follows Securities and Exchange Commission (SEC) Rule 10b5-1, which may be used to help protect you against claims of insider trading.
The trading plan lets you schedule regular selling of your company shares, even during your company's closed trading windows. This type of plan can offer you peace of mind because it's designed to protect you against claims of insider trading. Selling your shares through the trading plan also offers you the opportunity to then diversify your portfolio and potentially reduce your exposure to fluctuations in the price of your company shares.
Eligibility is determined by your employer but is generally available to all employees except Section 16 officers and board of director affiliates.
There are three time periods to be aware of with the trading plan:
- Enrollment window: When employees can enroll, modify, or withdraw from a trading plan
- Cooling-off period: A mandatory waiting period—with a minimum of 30 days—between plan adoption/enrollment and the first trade under the trading plan
- Trading plan period: Time frame when company shares are sold automatically
Note: For awards included in the trading plan, trades will follow the vesting schedule. For already vested shares included in the trading plan, trades will be sold according to the trading schedule you select.
The specific shares eligible for your trading plan depend on your company's specific rules. Generally, you can include:
- Shares that have already vested
- Shares that will vest during the plan period
- Shares purchased through your employee stock purchase plan (ESPP)
Awards vesting during the plan period will be sold on the next exchange trading day.1 For any award vesting during the cooling-off period, shares will be sold on the first exchange trading day1 after the cooling-off period. For shares you own (already vested shares), you can choose the quantity of shares and the exchange trading day(s)1 within the trading plan period, and the shares will be sold on that day(s).
Shares from awards that vest will be sold on the following exchange trading day1 using a market order on a not held basis2 with a volume-weighted average price (VWAP). VWAP is an order type executed on a best-efforts basis and is placed "not held" by using a track algorithm designed to achieve pricing that closely replicates the average price at which shares are traded throughout the day. Actual calculations may vary. If selected as part of the plan, shares from already vested awards will be sold by market order on the date(s) selected.
No. There is no commission on trades.
Cash is available, or "settles," two exchange trading days1 after the sale. The cash will be available in either your Schwab brokerage account or your Equity Award Center account. For unvested awards—shares vesting during the trading plan period—the cash proceeds from these sales will be deposited into your Schwab brokerage account. For vested award shares, the cash proceeds from these sales will be deposited into your Equity Award Center account.
While you are enrolled in the trading plan, you are not allowed to trade any of your company's securities outside of the plan.
Once the cash is in your Schwab account, you may choose your next steps. You can reinvest; diversify your portfolio; or request that the proceeds be sent to you by check, ACH (Automated Clearing House) transfer to a domestic bank, or wire.
The federal, state, local, and non-U.S. tax impacts to any particular taxpayer holding awards and participating in the trading plan will depend on individual circumstances. Typically, rates for capital gains or losses will apply. The length of time shares were held before selling will determine short-term or long-term capital gains or losses. Specific details may vary outside the U.S. We strongly recommend talking with your personal tax advisor regarding your particular circumstances.
A wash sale occurs if you sell securities at a loss and buy substantially similar shares within 30 days before or after the sale. In general, the tax deduction on a wash-sale loss is deferred.
Please talk with your personal tax advisor regarding any tax consequences that may apply to you if you participate in the trading plan.
You can make a change or withdraw from the Schwab Automated Employee Trading Plan only during the enrollment period. Only one trading plan can be finalized for the end of that enrollment. No changes can be made after the trading plan period begins. You may withdraw from the trading plan during the enrollment period, which means no trades associated with the plan will be executed and you will not have an active trading plan.
To maintain an affirmative defense against insider trading, industry best practices provide that you should continue your active plan through the entire plan period. A cancellation may weaken your affirmative defense under Securities and Exchange Commission (SEC) Rule 10b5-1. If your plan allows, you may cancel your plan after the enrollment period has ended. Once a plan is canceled, a required cooling-off period is applied. All further scheduled trading plan trades will cease, and you will be able to trade your company's securities only after the cooling-off period ends.
If your company notifies Charles Schwab of your employment being terminated, your trading plan will be canceled and you will be subject to a 60-day cooling-off period. All further scheduled trading plan trades will cease, and you will be able to trade your company's securities only after the cooling-off period ends.
If your account has certain restrictions—such as special codes or tax-related flags—you may not be eligible to enroll in the plan. For example: A mail restriction might mean you can't receive plan-related communications. A limited-purpose account* restriction could prevent certain transactions or plan participation. If these restrictions are applied after you’ve enrolled, your plan will be automatically canceled.
*Depending on your country of residence, you may have a limited purpose account. See the Schwab SPS International Account FAQs for Participants for more information.
Questions?
Call 800-654-2593 to speak with a specialist, Monday 7 a.m. to Friday 9 p.m. ET with continuous 24-hour support in between. Or log in to the Schwab Equity Award Center® to send a secure message.
Ready to enroll?
If your company enrollment window is open, log in to the Equity Award Center and select View Schwab Automated Employee Trading Plan to get started.