3 ms·
There's a lot of advice to value your options at $0. I'm curious how people do the math when considering moving from a big company with RSUs that are liquid at
by lukejduncan 10y ago
There's a lot of advice to value your options at $0. I'm curious how people do the math when considering moving from a big company with RSUs that are liquid at vest to a startup (doesn't have to be a unicorn). Big company RSUs can be a big part of your annual total compensation. Do thinking about a "fair market salary" do folks consider that their base + risk adjusted RSUs? Seems like the best advice I've seen here that might be applicable would be to negotiate down equity in favor of base comp. especially if you consider that equity will likely be granted as bonuses during your tenure.
- ng12 10y agoIt's hard to negotiate up base comp. The whole reason startups pay equity is because they are desperate to not pay you in cash. I think the real advice is don't join a startup (even a unicorn) for the money.
- ryandrake 10y agoMultiply your RSU quantity by the company's current stock price and consider them part of your salary when comparing. If your company's stock is not very volatile, they're pretty much equivalent to cash, since you can (and some would argue you should) sell them the day they vest, converting them to cash. Don't forget RSUs usually fully vest (stop coming in) after a few years, so if you're looking at an offer where you get 25% of your salary in RSUs that fully vest in 4 years, then keep in mind you're looking at a 25% pay cut after 4 years. I'm told some companies issue "evergreen" equity to counteract that problem, but I've never seen it in practice.
- lukejduncan 10y agoFWIW, at LinkedIn evergreen grants are fairly common but not guaranteed. That's prior to the MS acquisition though which has a reputation for being less generous with equity.