4 ms·

Mid-30's. Male. Married. A few kids. SF bay area. > 10 yrs at top tier post-IPO SV company. Backend infra development (C++). One of the top 10-15% engineers in

by ta-20161001 10y ago

Mid-30's. Male. Married. A few kids. SF bay area. > 10 yrs at top tier post-IPO SV company. Backend infra development (C++). One of the top 10-15% engineers in the company. > 400K total comp this year - < 50% of that is salary; rest is bonus and stock grants (portion vested in 2016 of all the grants received over the last 3-4 years). Going forward, it seems stocks will dominate the total compensation but its okay given the current state of my company. Taxes: effective 35-40% (federal + state + payroll).

jeffwass 10y ago
When reading these compensation threads, I've been curious about this for awhile. In your valuation, are you counting the stock's price at the time of issuance or time of vesting and delivery? If quoting as of time of delivery, I think it's a bit confusing as it mixes in the capital appreciation or loss of the stock with the employers actual intended total compensation for the year of the award. For example, let's say you were awarded 400 shares of stock 2 years ago, and 100 shares vest each year. Stock price was $300 two years ago at the time of the award, but now is $600 at the time of this year's vesting. Would you count the contribution of 100 vesting shares to your total compensation for this year as $60k? Or, since it was awarded 2 years ago, would you have included the full 400 shares only in your two-years-ago compensation number valued at $120k?
- ta-20161001 10y ago
  The stock value is at the time of vesting. So if I am awarded 40 stocks in 2014 with a grant price of 100$ and vesting over 4 years, 10 of them will vest in 2016. If 2016 (average) vesting price is 200, I am quoting 2000$ as my stock compensation. Basically, whatever will be reflected on my W2 under Adjusted Gross Income. But I agree, someone's stock compensation is tricky to evaluate - some quote it at the grant time, some quote at vesting time but at grant value, some quote otherwise.
- FT_intern 10y ago
  I thought it was standard to use: stock comp = (# stocks vesting this year) * (today's price of stock)

jeffwass 10y ago

When reading these compensation threads, I've been curious about this for awhile. In your valuation, are you counting the stock's price at the time of issuance or time of vesting and delivery? If quoting as of time of delivery, I think it's a bit confusing as it mixes in the capital appreciation or loss of the stock with the employers actual intended total compensation for the year of the award. For example, let's say you were awarded 400 shares of stock 2 years ago, and 100 shares vest each year. Stock price was $300 two years ago at the time of the award, but now is $600 at the time of this year's vesting. Would you count the contribution of 100 vesting shares to your total compensation for this year as $60k? Or, since it was awarded 2 years ago, would you have included the full 400 shares only in your two-years-ago compensation number valued at $120k?

ta-20161001 10y ago
The stock value is at the time of vesting. So if I am awarded 40 stocks in 2014 with a grant price of 100$ and vesting over 4 years, 10 of them will vest in 2016. If 2016 (average) vesting price is 200, I am quoting 2000$ as my stock compensation. Basically, whatever will be reflected on my W2 under Adjusted Gross Income. But I agree, someone's stock compensation is tricky to evaluate - some quote it at the grant time, some quote at vesting time but at grant value, some quote otherwise.
FT_intern 10y ago
I thought it was standard to use: stock comp = (# stocks vesting this year) * (today's price of stock)