5 ms·
The other thing that people seem to forget is that a lot of people calculate their FAANG Total Comp with the value of the stock today, not on the day they were
by ironjunkie 8y ago
The other thing that people seem to forget is that a lot of people calculate their FAANG Total Comp with the value of the stock today, not on the day they were given to them.
This simply because you could have yourself bought those stocks at the same price back in the days.
You cannot include the increase as part of your total comp
This in some case makes a huge difference, especially now, where all the tech stocks have gone to the moon.
I believe that a lot of 400k$ packages would actually be no more than 250k$ if calculated correctly
- dmode 8y agoFAANGS give you RSUs, which are cash equivalent. When I am referring to 400K, I am referring to "total cash in hand" at the end of the year. Generally the comp you get quoted when you get hired is $200K base + $200K in RSUs based on hire date's stock price. So in today's frothy stock market, you would at least earn $400K and possibly more.
- ironjunkie 8y agothat's what I'm saying. I'm clarifying that the value of the RSU is when you got them at the time of the offer. Not at the time you sell it or vest it.
- dmode 8y agoI see. But for most people, when they look at their W-2 they will see the total cash they earned.
- ironjunkie 8y agoThe stock could have gone down also. Total comp cannot take the upside of the stock. You could have invested in the same stock and receive the same upside also. This is part of the luck in being in the right company or pick the right stock. That's why Total comp should be the number you got with the information you got at the time of the offer
- joshuamorton 8y agoYes it can. I don't say my total comp in a given year was my salary and the target performance bonus. I say it was my salary and my actual bonus. Stock comp is much the same.
- dsnuh 8y agoThe value of an unvested RSU is a very tricky thing. I had to try to value my potential RSU benefits when I got divorced. It's not the same as a stock option where even if you leave, you have an asset that you can still purchase at the contract price. RSUs are little more than a promise that at point in time X, company promises to release Y stocks to you. I'm pretty sure you could argue that RSUs have zero value until released to you.
- RestlessMind 8y agoRSUs are guaranteed money at big tech companies. I have never heard of any MAFANGs rescinding their RSUs. In fact, when shopping for a house in SV, my mortgage lender also took unvested RSUs in account when deciding how much to pre-approve me for.
- dmode 8y agoI see. But for most people, when they look at their W-2 they will see the total cash they earned. So it is fair that people call that their salary.
- pm90 8y ago200K in RSU's per year or over 4 years?
- seattle_spring 8y agoIf their base is 200k? Then it's 200k per year RSUs (800k 4-year grant)
- throwaway7551 8y agoI'm at Google and I think only L7+ are getting that much, and that's not many people. I'm an L5 and my RSUs are less than 1/4 that.
- deleted 8y ago[deleted]