A GUIDE FOR CYBERARK
Navigating the CyberArk acquisition by Palo Alto Networks: handling your stock options, RSUs & PSUs.
Paceline helps employees understand how their equity is expected to be treated, what they should receive, and what to address before the transaction closes.
Fee-only fiduciary · Commission-free · Specialists in tech & biotech M&A
Book time on my calendar.
We Have Been Featured In
WHY THIS MATTERS
Your M&A deal terms are formulaic. Your actual payout may not be simple.
The merger agreement defines how each type of equity is treated, but your outcome depends on the stock you own, the grants you've received, their vesting status, and the terms that apply to each award.
Each award type is treated differently
Owned shares, stock options, RSUs, and other awards can receive different treatment.
Timing and vesting can matter
Vested and unvested awards may be treated differently, and whether vesting accelerates can depend on your company stock plan, individual grant terms, and the transaction terms.
Your payout should be independently verified
Once proceeds are paid and the transaction is complete, mistakes can become much harder - and in some cases impossible - to correct.
HOW PACELINE CAN HELP
We help you make the most of your employer stock proceeds
Verify what you should receive before the payout occurs.
Before closing, there is still time to confirm how your awards should be treated while the relevant records and company contacts are available. Transaction errors can happen, and in some cases accepting a payout may mean acknowledging the amount paid as correct - making an error much harder, or even impossible, to correct later.
Book My CallUPON TRANSACTION CLOSE
How each form of your CyberArk equity will be handled
When the acquisition reaches its closing stages, you’ll face critical decisions about your owned shares, options, RSUs and PSUs. Here’s how each is treated.
Owned shares
Merger consideration: 2.205 shares of PANW stock, plus $45 in cash.
Includes previously exercised stock options, plus vested RSUs and PSUs that have converted into common shares of CyberArk stock.
Stock options
In the money (vested): you receive the merger consideration less the exercise price.
In the money (unvested): converted into new PANW options with the same terms and conditions.
Out of the money: canceled.
RSUs
Converted into new Palo Alto Networks RSU grants, based on a ratio defined in the merger agreement.
Ratio = merger consideration ÷ the PANW stock price at the effective date, rounded to the 4th decimal place.
PSUs
Converted into new PANW PSU grants, similar to RSUs.
Performance requirements whose measurement period has not yet completed are treated as having achieved their target level of performance.
Figures and terms reflect publicly announced deal details and are subject to change — always confirm against the definitive merger agreement and your own plan documents. This page is educational and is not tax, legal, or investment advice.
Owned Shares
Merger consideration: 2.205 shares of PANW stock, plus $45 in cash.
Includes previously exercised stock options, plus vested RSUs and PSUs that have converted into common shares of CyberArk stock.
Stock Options
In the money (vested): you receive the merger consideration less the exercise price.
In the money (unvested): converted into new PANW options with the same terms and conditions.
Out of the money: canceled.
RSUs
Converted into new Palo Alto Networks RSU grants, based on a ratio defined in the merger agreement.
Ratio = merger consideration ÷ the PANW stock price at the effective date, rounded to the 4th decimal place.
PSUs
Converted into new PANW PSU grants, similar to RSUs.
Performance requirements whose measurement period has not yet completed are treated as having achieved their target level of performance.
Figures and terms reflect publicly announced deal details and are subject to change — always confirm against the definitive merger agreement and your own plan documents. This page is educational and is not tax, legal, or investment advice.
How We Help
We work with tech, biotech, and pharma professionals navigating complex equity compensation situations—IPO, M&A, and multiple stock grants—who want a fiduciary advisor managing their biggest financial asset.
Most clients are directors, VPs, executives, and business owners facing important financial decisions around equity compensation, retirement, tax planning, and wealth preservation.
As fee-only fiduciaries, we provide comprehensive financial planning, investment management, and ongoing guidance tailored to your unique goals and circumstances.
COMMON QUESTIONS
What CyberArk employees are asking
-
Often, yes. Make sure every grant you hold is documented and that you have copies in hand before stock-plan records migrate to the acquirer. Errors discovered after close are far harder — sometimes impossible — to correct.
-
The payout amount is formulaic, but it’s processed manually during a period of turnover and system migration. Miscalculations, incorrect distributions, and grants never formally issued all do occur — and they’re easiest to fix while you still hold the original paperwork.
-
When several years of vesting pay out at once, it can push you into a higher bracket in a single year. We help you understand the timing and tradeoffs. We advise on structure and treatment — we don’t prepare returns or calculate your exact bill; that’s your CPA’s role, and we coordinate with them.
-
The intro call is free. Paceline works with clients who have roughly $500K+ in investable assets (we’re a strong fit at $1M+) — and proceeds from this deal often count toward that. If we’re not the right fit, we’ll tell you on the call.
-
No. Paceline Wealth Management is not affiliated with, endorsed by, or sponsored by CyberArk or Palo Alto Networks. Information here is drawn from publicly announced deal terms and may change — rely on your official plan documents for your specific situation.
To get started, schedule an intro call
A short conversation can help you understand how your equity should be treated, what you should receive, and what to address before the deal closes.
Prefer to talk? Call Paceline at 617-440-7442.