What to do if the stock price drops after vesting
This is the defining pain of equity compensation: a tax bill anchored to a price that no longer exists.
The tax is fixed
Ordinary income was locked at the vest-date value. A later decline does not reduce it.
Harvest the loss
Selling now creates a capital loss you can use against gains and, to a limit, ordinary income — while freeing cash for the tax bill.
Mind the vest calendar
Check the 61-day wash-sale window around your next vest before selling at a loss.
This article is educational and not tax, legal, or financial advice. Talk to a CPA or tax advisor about your specific situation.