3 ms·
RSU comp usually works like this (using made-up round numbers and assuming the share price is flat to keep things easy): * Day 1: You are granted $100k of RSUs
by labcomputer 8y ago
RSU comp usually works like this (using made-up round numbers and assuming the share price is flat to keep things easy):
* Day 1: You are granted $100k of RSUs[1] vesting over 4 years
* Day 365: 1/4th of your original RSU grant vests ($25k). Your boss likes you, so you are granted a "refresher" block of $50k of RSUs vesting over 4 years.
* Day 730: 1/4 of your original RSU + 1/4 of your new RSU vests ($25k + $12.5k) = $37.5. You continue to do a good job, so you are granted an additional "refresher" $50k of RSUs.
* Day 1095: 1/4 of each block vests. You have ($25k + $12.5k + $12.5k) = $50k of shares vesting. You get a promotion and are granted $100k more RSUs.
* Day 1460: You have ($25k + $12.5k + $12.5k + $25k) = $75k of shares vesting. You get a refresher of $75k RSUs.
* Day 1825: Notice that your original block of RSUs is now exhausted. You have ($12.5k + $12.5k + $25k + $18.75k) = $68k of shares vesting.
[1] RSU = Restricted Stock Unit, not the same thing as options. RSUs are like stock, except that it's really a promise to give you real shares at specific dates in the future, provided that you meet certain obligations (like continuing to be employed by the granting company).