A GUIDE FOR CYBERARK

Navigating the CyberArk acquisition by Palo Alto Networks: handling your stock options, RSUs & PSUs.

We specialize in guiding clients through M&A with a clear goal: understanding how their stock will be handled in the transaction, and receiving every dollar they have earned — and not one dollar less.

Fee-only fiduciary  ·  Commission-free  ·  Specialists in tech & biotech M&A

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FEE-ONLY FIDUCIARY · CORNELL MBA, CEPA · TWO-TIME FIVE STAR WEALTH MANAGER

WHY THIS MATTERS

The amount is formulaic. The process of paying it is manual.

In large-scale corporate transactions like this one, the amount that you will receive for your stock is formulaic — a specific amount of cash and shares for every share, stock option, RSU, or PSU you own — but the process for actually paying them out tends to be manual.

“Instances of employees having their payout miscalculated or incorrectly distributed, or stock grants not being formally issued in advance of the close of an acquisition, do occur. Given the whirlwind of activity and staff turnover that tends to coincide with M&A, it is critical to understand exactly what you have earned, and that you promptly receive it.”

PRO-TIP

In cases where a payout does not reflect the full amount that has been earned, employees often struggle to correct the issue if they do not have their stock grant documents in hand to substantiate the amount that they are due to receive. As an acquisition approaches its final stages, stock plan documents and data often begin to migrate to their new home. If an error were not discovered until after the deal was completed, an employee would likely have no recourse.

HOW PACELINE CAN HELP

We help you make the most of your employer stock proceeds

Take the time to get your finances in order

Waiting for a deal to close can be a big distraction from day-to-day work. Get organized so you can make the most of this opportunity, while reducing any related stress.

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UPON 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.

WHY CHOOSE PACELINE

Specialists in helping tech employees through M&A

Fiduciary

We are required to act in the best interest of clients at all times.

Investment expertise

A background managing multi-billion-dollar institutional portfolios — investment experience at a scale most advisors lack.

Commission-free

A simple, transparent fee schedule. You always know what you’re receiving and what you’ll pay.

“Big financial events like this don’t happen very often, and even among veterans of the tech industry every M&A transaction is unique — your financial situation will be different each time you encounter it. That’s why it’s so valuable to have a financial advisor who specializes in helping people in tech navigate the process of employer M&A.

”

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.

Big financial events like this don’t happen often, and every M&A is different. A short call now can prevent a costly mistake later.

REVIEW MY CYBERARK PAYOUT

Paceline Wealth Management, LLC is a registered investment adviser. This page is for educational purposes only and does not constitute tax, legal, or investment advice. Paceline is not affiliated with, endorsed by, or sponsored by CyberArk or Palo Alto Networks. Deal terms summarized here are based on publicly available announcements as of the date of publication and are subject to change; rely on official plan and transaction documents for your specific situation. Advisory services are offered only where Paceline and its representatives are properly licensed or exempt from licensure.