2 ms·
I've literally never heard of a tech company not offering deferred compensation (either stock options or RSUs).
by seattle_spring 9y ago
I've literally never heard of a tech company not offering deferred compensation (either stock options or RSUs).
- giobox 9y agoIts not _that_ uncommon for an engineer not to receive options/RSUs. Sure it happens a lot in this industry, but it's not a hard and fast rule, especially once you leave Silicon Valley. I've certainly seen the "Director and above" approach mentioned earlier several times as well.
- loeg 9y agoRSUs aren't elective deferred compensation. They're just income at the time of vest. ISOs are a little weirder. Nevertheless, neither is what I'm talking about. Traditional 401(k)s are a type of qualified deferred compensation plan and are slightly closer to what I have in mind. The type of plan I am referring to is a non-qualified deferred compensation plan. Unlike 401(k)s, they are not protected from the sponsoring organization (or the sponsoring organization's creditors) accessing the funds, for example, in bankruptcy. On the other hand, they can smooth out income taxes, and are not subject to the same contribution caps as 401(k) plans. Like in a 401(k), these non-qualified plans allow you to control how funds are invested while they are deferred. Unlike 401(k)s, you choose when they will pay distributions in advance. Here's a little bit more about this kind of plan, from Fidelity: https://www.fidelity.com/viewpoints/retirement/nqdc https://www.fidelity.com/viewpoints/retirement/nqdc > Most companies provide NQDC plans as an executive retirement benefit, because 401(k) plans often are inadequate for high earners