Philip Morris International (PM) RSU sell-vs-hold
Calculator · free · no signup · PMSell at vest or hold? Compare after-tax payout from selling Philip Morris International RSUs at vest vs. holding through the LTCG cliff at 12 months.
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Your vest
Tax inputs
Hold strategy
Best after-tax payout — at year 1 yr
$47,709
Sell + invest wins by $4,981 over Hold 1 yr.
Estimates only. Not financial advice.
Heads-up: under-withholding. Your employer withholds federal tax at the IRS supplemental rate (22.0% on this vest, ≈ $17,600). Your marginal federal rate on this vest is 32.7%, owing $26,171. Expect to settle the $8,571 gap at tax time.
The hidden purchase
Tax was paid at vest either way. Holding is mathematically equivalent to taking $44,509 in after-tax cash and buying $44,509 of PM today.
Most diversification frameworks would advise against a purchase that size in a single name; the right answer depends on your conviction in PM. Holding past one year converts the gain to LTCG.
Sell + invest
Best payout| Vest value (shares × price) | $80,000 |
| Federal | |
| State | |
| Medicare | −$1,160 |
| Additional Medicare | −$720 |
| Market gain over 1 yr at 10.0% | $4,451 |
| Cap-gain tax on diversified gain — LTCG (federal + state + NIIT) | −$1,251 |
| Net at year 1 yr | $47,709 |
Sell every share at vest; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Hold 1 yr
| Vest value (shares × price) | $80,000 |
| Vest tax (federal + state + FICA) | |
| Net at year 1 yr | $42,728 |
Sold 444 shares to cover vest tax (net-settled); kept 556 shares 1 yr to qualify for long-term capital gains.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're still employed at vest.
Both columns are stated in year-1 yr dollars. The sell side compounds at the market return; the hold side compounds at your single-stock expected return after a 20% volatility drag.
Estimates only. Assumes net-settled (sell-to-cover) vesting; double-trigger and pre-IPO RSUs are out of scope. Excludes multi-state moves, AMT interactions on other equity, and 83(b) elections. Not financial advice.
You evaluated one RSU vest. The beta plans every vest of every grant across years, with concentration and AMT in the loop.
Request beta access →Related calculators: RSU Lot Order Calculator · Stock Concentration Calculator
About Philip Morris International
Philip Morris International (PM) is a public Consumer Staples company, incorporated in Virginia and headquartered in Stamford, CT.
Last close: $187.46 per share (as of 2026-10-03).
Equity grants at Philip Morris International typically include restricted stock units (RSUs).
Philip Morris International Inc. (PMI) is a American publicly traded tobacco company, with products sold in over 180 countries. Marlboro is PMI’s most recognized brand, but in the last quarter of 2023, Iqos generated the greatest revenue. Philip Morris International is often referred to as one of the companies comprising Big Tobacco. The company ranked No. 117 in the 2025 Fortune 500 list of the largest US corporations by total revenue.
Source: Wikipedia (CC BY-SA 4.0)
Altria separated its international tobacco business in 2008, giving this company the rights to Marlboro everywhere outside the United States. It has invested more aggressively than any peer in replacing cigarettes, and IQOS heated tobacco plus the ZYN nicotine pouch acquisition now generate a large and growing share of revenue. The stated ambition is a majority smoke-free business, which is a genuine reallocation rather than a marketing position. Currency movements materially affect reported results given the geographic mix. Headquarters are in Stamford, Connecticut.
Sources: sec.gov · en.wikipedia.org
Equity comp at Philip Morris International
- PMI's equity plan uses a double-trigger structure at a change in control (an outside party gaining control of the company, for example through a takeover). If the acquirer replaces outstanding RSUs/PSUs with equivalent awards, those awards only accelerate and fully vest if the employee is then involuntarily terminated without cause, or resigns for good reason, within two years of the change in control. If the acquirer does not replace the awards, they vest immediately upon the change in control itself, without requiring a job loss.
- RSUs use double-trigger vesting. Two things must both happen before the shares are yours: (1) the normal time-based vesting completes, and (2) the company has a liquidity event (an IPO or an acquisition). Until both happen, you do not yet own the shares and you do not owe tax on them.
Researched 2026-08-25.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Philip Morris International.
Philip Morris International (PM) RSUs vest as ordinary income at the price on vest day. The decision is whether to sell at vest and reinvest, or hold the shares through the 12-month LTCG cliff. This calculator runs both paths through the same after-tax math so you can compare like-for-like.
Example: 500 Philip Morris International (PM) RSUs vesting at $187.46 per share is $93,730 of ordinary income on vest day. After roughly 32% combined federal + state + FICA (~$29,994), the post-tax share value is ~$63,736. Holding 12 months for long-term capital-gains treatment then only matters for the price change between vest and sale; the ordinary income at vest is already locked in. The calculator runs both paths through the same after-tax math.
All Philip Morris International tools → · Use the generic RSU Sell-vs-Hold Calculator for any company. Diversifying multiple RSU lots? See the lot-by-lot sell order →
Philip Morris International equity questions
- Should I sell or hold my Philip Morris International RSUs at vest?
- Philip Morris International restricted stock units (RSUs) are taxed as ordinary income on their value at vest whether or not you sell. The only open decision is what to do with the shares afterward: sell at vest and reinvest, or hold past twelve months for long-term capital-gains treatment on any further gain. The calculator above runs both paths through the same after-tax math so you can compare them directly.
- Does Philip Morris International grant ISOs, NSOs, or RSUs?
- Equity compensation at Philip Morris International typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do Philip Morris International RSUs use double-trigger vesting?
- Yes. Philip Morris International restricted stock units (RSUs) vest only when two things both happen: the time-based schedule completes, and the company has a liquidity event such as an initial public offering (IPO) or an acquisition. Until both occur you do not own the shares and owe no tax on them.
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