Overview
Through the Lineage Legacies annual stock program, eligible team members will be granted Restricted Stock Units (RSUs) which vest over time – giving them ownership in the business.
The Legacies program is based on the performance of our company which, in turn, is dependent upon the contributions our team members make on the job every day. As team members seize opportunities to deliver for our company and our customers, Lineage succeeds – and our stock value increases along with the value of granted RSUs. As owners, team members can choose to sell or hold their vested shares, providing flexibility to cover important expenses while building long-term wealth for themselves and their families.
Eligibility
Eligibility for Legacies applies to full or part-time US and Canada Lineage team members who were hired on or prior to June 15, 2026.
Further, temporary or seasonal workers, those on an extended unprotected leave of absence (over 1 year as of June 15, 2026) and those who are covered by a collective bargaining agreement are ineligible to receive a Legacies grant.
Otherwise, eligible team members who joined the company after June 15 may be eligible for any future Legacies grants.
Please contact your local HR partner if you have any questions about eligibility.
Accepting an Award
Eligible US team members do not need to “accept” their Legacies grants within E*TRADE. Lineage has opted to “auto-accept” all awards issued to US-based team members. This means team members will not need to take any immediate action to secure their Legacies grants.
That said, we encourage you to log in to E*TRADE and view the grant as issued. New team members will need to activate their E*TRADE account prior to logging in to view their grant (see “Activate your E*TRADE account” within the Documents section of this webpage). Additionally, you will need to log in to transfer or sell any shares after they have vested (over the next 1-3 years).
If you would prefer to decline your Legacies grant, you may send your request to equity@onelineage.com within 45 days of the issuance to formally decline. After that time, all grants will be considered awarded within the system./p>
What About Taxes?
We know taxes are confusing and often frustrating. Lineage is not able to offer our team members tax advice as each of our personal situations are different, but we’ve pulled together some basic context around what you can expect when it comes to taxation regarding your company stock/RSU awards.
Accessing Tax Documents
After preparing your tax documents, E*TRADE from Morgan Stanley will include them in your Documents section of your online account, where you can access and download for your records.
Net Settlement for RSUs
Lineage uses net settlement for our Restricted Stock Units (RSUs) and Legacies Awards, meaning Lineage withheld a portion of your shares to pay estimated payroll tax owed on your vested stock awards. The value of your stock award is included in your W-2 Box 1 wages, and the taxes you paid when Lineage withheld your shares are included in the boxes on your W-2 that display taxes that were withheld during the tax year.
Please also note that while Lineage withheld a portion of awards that vested, it is possible that due to your income and other factors, you may owe taxes for vesting events beyond what was withheld by Lineage.
It’s highly recommended that you work with a professional tax advisor to understand how your equity impacts your tax situation. The tax treatment of equity compensation is complex and may be subject to additional rules and exceptions that are not discussed here. It’s important that you understand the types of taxes you may be subject to when you receive equity, provide the right documents to your tax preparer to submit an accurate annual tax filing, etc.
Please note that Lineage does NOT sell shares to cover taxes. Therefore, you will only receive a 1099-B from E*TRADE if you sold shares on the platform.
1099-DIV for Dividends
If you held vested shares after the ex-dividend date for the dividend paid in a given year, a 1099-DIV will be available in E*TRADE.
What are Dividends?
Dividends represent a portion of a company's earnings that are paid to its shareholders as their share of the company’s profits. Shareholders, in this case, include anyone who has received Lineage stock. As owners of Lineage, you are able to share in the continued value creation of Lineage through these dividend payments.
If you own vested shares by the ex-dividend date, you will receive the dividend payment in your E*TRADE from Morgan Stanley account where your shares are held.
What are Dividend Equivalents?
Dividend equivalents are cash payments made through payroll when your RSUs vest. They are equal to the dividends you would have received during the vesting period if the underlying shares had been fully vested and owned by you during that time. This is a valuable benefit offered by Lineage that allows RSU holders to receive the equivalent value of dividends paid during the vesting period, helping ensure team members participate in the company's growth and success before their shares vest.
Capital Gains Tax and Avoiding Double Taxation on RSUs
A common mistake is double taxation on RSUs. As noted above, estimated income tax on RSU awards were automatically withheld by Lineage, and such income and withholding were included in the W-2 provided by Lineage. If you sold shares in a given year, capital gains tax is likely due on any increase in the value of the shares that occurred between when your shares vested and when such shares were sold. Your Form 1099-B is what your tax provider or tax software will use to determine if you have any capital gains tax due and is only provided to you by E*TRADE from Morgan Stanley if you sold shares.
The adjusted cost basis is the value used to assess if there was a capital gain when you sold your shares. Ensuring the adjusted cost basis is what is provided to your tax preparer or software is important to avoid paying double taxes. On the E*TRADE 1099-B, there is a page titled "Stock Plan Transaction Supplement ," which will list the adjusted cost basis to provide to your tax preparer or software.
Additional Resources
We have linked tax filing guides from E*TRADE for your convenience below.
We hope this information is helpful as you prepare your taxes. If you have any questions or need further assistance, please do not hesitate to reach out to E*TRADE from Morgan Stanley at 1-800-838-0908.
Disclosure: These statements are for informational purposes only and not intended to be a formal opinion of tax consequences, and accordingly, it may not contain a full description of all the facts or a complete analysis of all relevant tax issues and authorities. The analysis and conclusions discussed are based on our understanding of the facts, assumptions, information, and documents referenced herein, as well as current tax laws and published tax authorities in effect as of the date of this presentation, which are subject to change. If the facts or assumptions described herein are incorrect or change, or the tax laws change, our analysis and conclusions would likewise be subject to change. Please consult a qualified tax advisor if you have any questions about your individual circumstances.
Transactions
After your shares vest, you can place trades online through your E*TRADE account. There are no trade fees or commissions for share transfers or sales made on the E*TRADE platform.
In addition to online trading, you can also place trades over the phone with a broker at E*TRADE from Morgan Stanley for an additional fee. This option provides flexibility for team members who may prefer to work with a broker or who have more complex trading needs. By offering multiple trading options, the Legacies plan ensures that team members can manage their RSUs in a way that best suits their preferences and needs.
If you have additional questions when considering a potential trade, please reach out to the E*TRADE from Morgan Stanley Support Center at 1-800-838-0908. For an international call, contact E*TRADE US Support at 1-650-599-0125.
Adding a Beneficiary
Please refer to the following instructions regarding the beneficiary process in E*TRADE for US Team Members.
Tools & Resources
| Resource | Description | Contact Information |
|---|---|---|
| E*TRADE Stock Plan Customer Service | Assistance with your online E*TRADE account | Domestic call to E*TRADE US support: 1-800-838-0908 International call to E*TRADE US Support: 1-650-599-0125 |
| Morgan Stanley Financial Wellness and Planning | Financial planning and advice | 1-866-324-6087 |
| E*TRADE Stock Plan Support Center | FAQs on employee stock ownership and navigating E*TRADE | E*TRADE Support Center | Morgan Stanley at Work |
| E*TRADE Login | URL for the E*TRADE login page | Log on to E*TRADE |
| E*TRADE Tax Guide | E*TRADE tax filing guidance | |
| Activate Your E*TRADE Account | E*TRADE Account Activation Guide | |