Quitting a tech job
The short answer: the math that makes a tech exit different is equity. Vested RSUs are yours, but unvested RSUs are forfeited the day you leave, and vested options usually expire 90 days after departure unless you pay to exercise them. Before you resign, map your vesting schedule, price what you would walk away from, and time the exit around the next meaningful vest. The runway math is the same as any field, just be sure to base it on liquid savings, not paper equity you might lose.
What actually changes in tech
Most of quitting is the same everywhere: size your runway, handle your benefits, resign well. Tech adds one large variable, equity, and a few smaller ones. Here is what to check before you give notice.
| Factor | How it works in tech |
|---|---|
| Unvested RSUs | Forfeited on the day you resign |
| Vested options | Yours, but usually expire ~90 days after leaving |
| Vesting cliffs and refreshers | Can make a few extra weeks very valuable |
| Notice | Usually at-will, two weeks is the norm |
| Non-competes | Often unenforceable, but IP and confidentiality still bind |
| Health cover (US) | Ends with employment; COBRA or marketplace |
The equity question: what you forfeit
Start by separating what is already yours from what is not. Vested RSUs have converted to shares you own; quitting does not touch them. Unvested RSUs are not yours yet, and a voluntary resignation forfeits them, however close they are to vesting. For a senior engineer mid-grant, that forfeited slice can be a six-figure number, which is why the first task is to pull your equity statement and read the vesting schedule literally. The stock options and ESOPs guide covers the mechanics in depth.
The 90-day option trap
Vested stock options are the part people lose by accident. They are yours, but only if you exercise them inside the post-termination window, which is commonly 90 days from your last day. Miss it and they expire worthless. Exercising is not free: you pay the strike price per share, and depending on the option type and the gap between strike and current value, you may trigger a tax bill, including alternative minimum tax for incentive stock options. So the real question before resigning is whether you have the cash and the appetite to exercise within 90 days, or whether those options are effectively part of what you are giving up.
Timing around vesting and refreshers
- Map every vest date. List your next RSU and option vests, any one-year cliff, and any refresher grants. Put a dollar value on each.
- Weigh the next vest against the wait. If a large tranche vests in a few weeks, staying that bit longer can capture equity worth far more than the delay costs you.
- Check the exact vest mechanics. Some grants vest monthly, some on quarterly or annual dates. The difference decides whether waiting two weeks or two months captures the next slice.
- Do not over-optimise. Chasing every future refresher means never leaving. Capture the next clear vest, then go if the job is done for you.
Non-competes, IP, and confidentiality
Two different things often get confused. A non-compete restricts where you can work next, and its enforceability varies sharply by location; some jurisdictions, notably California under its long-standing rule in Business and Professions Code section 16600, broadly void them for employees. Confidentiality and invention-assignment terms are separate and generally apply everywhere: even where you can freely join a competitor, you cannot take source code, trade secrets, or proprietary documents with you. Read your own agreement, and where the stakes are high, get advice on your local rules rather than assuming.
The runway math for high, lumpy pay
Tech compensation is often large but uneven, a high base plus bonuses and equity that may or may not be liquid. That makes it tempting to feel richer than your spendable savings actually are. Size your runway on liquid cash and your essential monthly spending, not on paper equity you might forfeit or options you may not exercise. The upside is that high earners who have banked their RSUs often have a strong runway; the risk is counting unrealised equity as a safety net it is not. Run the numbers in the runway calculator, and if financial independence is on your mind, the FIRE number calculator puts the longer goal in perspective.
Price the exit before you give notice
Two numbers decide a tech exit: what you forfeit by leaving now, and how many months your liquid savings cover. Size the second one first, then weigh it against the equity on the table.
Open the runway calculatorFrequently asked questions
What happens to my RSUs and stock options when I quit a tech job?
Vested RSUs are already yours and you keep them; unvested RSUs are almost always forfeited the day you leave. Vested stock options are yours to exercise but usually only within a short window after departure, commonly 90 days, after which they expire. Unvested options are forfeited too. The size of what you walk away from depends entirely on where you are in your vesting schedule.
How long do I have to exercise stock options after leaving a tech company?
The standard post-termination exercise window is 90 days from your last day, though some companies offer longer. If you do not exercise vested options in that window, they expire and are lost. Exercising also costs money, the strike price, and can trigger a tax bill, so factor both the cash and the tax into your timing before you resign.
Should I quit before or after my equity vests?
If a meaningful tranche of RSUs or options vests soon, waiting for that vest date can be worth a large sum, since unvested equity is forfeited on departure. Map your vesting schedule, including any cliff and upcoming refreshers, and weigh the value of the next vest against the cost of staying. Sometimes a few extra weeks captures equity worth far more than the delay.
Are non-competes enforceable for tech workers?
It depends heavily on location. Some places, notably California, broadly void non-compete clauses for employees, while others enforce reasonable ones. Confidentiality and invention-assignment terms generally still apply everywhere, so even where you can join a competitor, you cannot take code, trade secrets, or proprietary material. Check your agreement and your local law before you assume either way.
People also ask
Is it better to quit or wait for a tech layoff?
Financially, a layoff often beats quitting in tech, because it can bring severance, accelerated or extended equity treatment in some cases, and unemployment eligibility that a voluntary resignation forfeits. If a layoff looks likely and you can wait, it may pay to. But if you have a strong offer or the job is harming you, the control of quitting on your terms can outweigh waiting for a layoff that may not come.
How much runway do I need to quit a tech job?
The same rule applies as any field: enough to cover your essential monthly spending for the months you expect to be without income, plus a buffer. Tech compensation is often high but lumpy because of equity, so base your runway on liquid savings and essential costs, not on paper equity you may forfeit. Six months of expenses is a common target for an open-ended exit.
Do I lose my unvested RSUs if I resign?
Almost always, yes. Unvested RSUs are forfeited when you voluntarily resign, regardless of how close they are to vesting, unless your specific plan says otherwise, which is rare. This is exactly why timing a resignation around vest dates matters so much in tech, where unvested equity can represent a large share of total compensation.