Chime Equity Compensation Guide | RSU Taxes, Lockups, and IPO Planning Tips

On June 12, 2025, Chime hit the Nasdaq under the ticker CHYM, pricing its IPO at $27/share—above its $24–$26 range—raising $864 million and valuing the company at approximately $11.6 billion (fully diluted).

As an employee holding RSUs, ISOs, NSOs, or phantom share awards, this day marks the moment your compensation turns into actual stock or cash, and your tax liabilities kick in.

✅ RSUs — Now Stock & Taxable

Your double-trigger RSUs are now stock; the $27 FMV is taxable as W‑2 income when shares settle—often automatically—regardless of whether you sell.

• If you've already exercised ISOs, AMT may have been triggered earlier.
• If not, a post-IPO exercise means that heavy capital can be locked in and taxed, so timing is crucial.

• If eligible, phantom shares will be paid out at the IPO value, taxed as ordinary income immediately.

A standard 180-day lock-up period applies, although insiders may receive 25% of their liquidity after 90 days. This delayed selling window means that your tax event occurs first, followed by liquidity later.

Chime likely withheld ~22%, but your actual bracket may be ~37% or higher, including state taxes. That difference can become a painful liability come tax season.

If your RSUs vest or settle today at $27, but the stock price drops to $20 later, you will be taxed on the value you never realized, incurring a significant cash-flow risk.

Only equity acquired when Chime's valuation was under $50 million may qualify. Let’s confirm if your awards meet Federal §1202 criteria.

Model Your Tax Bill Today

• Calculate the income triggered and C-corp impact of your FMV × vesting quantity.
• Compare withholding vs. expected tax to budget the gap.

Consider Pre-Funding for Lock-Up

• Liquidate ~25–50% of unlocked shares post-IPO (once allowed), to cover the April tax bill.

Manage AMT if You Have ISOs

• Prepare Form 6251 now and plan if you exercised. AMT credit filings may follow.

Plan for Diversification Post-Lock-Up

• Create a ‘sell’ strategy tiered by price targets, bracket thresholds, and philanthropic offsets.

Maximize QSBS if Applicable

• If you hold early Chime ISOs or stock that may meet §1202 criteria, build documentation now (the 5-year clock starts from the date of exercise).

Most advisors miss the mark:

• Sell products or charge AUM
• Don’t integrate tax, timing, or FMV strategy
• Avoid or misunderstand AMT/QSBS intricacies

I don’t.

• 20+ years building tax-aware equity strategies for pre- and post-IPO tech professionals
• Flat-fee, complete tax prep, and no investment product pressure
• Specific expertise with RSUs, ISOs, NSOs, cash-settled awards, AMT, QSBS, lock-ups, and diversification