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Typically they also tell you the Fair Market Value of the shares and you just multiply by the number of shares offered. They aren't options and you just get the
by rawnlq 10y ago
Typically they also tell you the Fair Market Value of the shares and you just multiply by the number of shares offered. They aren't options and you just get them whenever the company goes public. But they are completely illiquid before then.
https://en.wikipedia.org/wiki/Fair_market_value https://en.wikipedia.org/wiki/Fair_market_value
Quoting them in dollars is probably not too wrong if you believe the company's valuation won't change much (which is probably true for these unicorns). Even groupon's valuation didn't drop more than one order of magnitude.
- hkmurakami 10y ago>They aren't options and you just get them whenever the company goes public. But they are completely illiquid before then. Many companies now have a buyback mechanism where the employer will buy back your RSUs at a pre-determined price (often the price per share in the last priced round). Although the vesting schedule is the same as if it were options, the contracts often have a clause where technically the RSUs have not vested, in order to avoid capital gains taxes on a (fairly) illiquid asset.
- sjg007 10y agoYeah, he will pay taxes on the vested illiquid RSUs on top of his 130k.