3 ms·
I'm far from an expect, but unless I'm misunderstanding your question, no, that's not it. RSUs negate some of the downside risk for an employee (vs an option),
by jsjohnst 9y ago
I'm far from an expect, but unless I'm misunderstanding your question, no, that's not it. RSUs negate some of the downside risk for an employee (vs an option), but have similar upside. With an RSU, it has value as long as the company has value, with an option, it has no value unless the sell price is above the strike price.
- bogomipz 9y agoI probably didn't articulate that as well as I could have. You answered my question though thanks. I actually don't hear about RSUs as much except for some unicorns that seem to be staying private for longer and longer.
- jsjohnst 9y agoMany publicly traded companies issue RSUs over options these days. But yeah, many startups don't.
- bogomipz 9y agoYes, I think that RSUs are the most common form of stock grants for publicly traded companies. I think FB might hae been one the first SV companies to use it for employees pre-IPO.