4 ms·
My understanding is that all new hire grants @ facebook are given in restricted stock units (RSU) not options, in part to avoid the 500 shareholder rule.
by far33d 16y ago
My understanding is that all new hire grants @ facebook are given in restricted stock units (RSU) not options, in part to avoid the 500 shareholder rule.
- beagle3 16y agoI don't know how RSUs count against the 500 shareholder rule -- but for tax purposes, they count as an UNrestricted grant. That is, if you get $1M equivalent shares in RSUs, you get taxed immediately on that value, regardless of the restrictions. So you have to pay $350K (and that's just federal!), which you have no way to recover until the restriction is lifted. Worse, if you get fired the next day, you're out $350K with no way to reclaim them. Pay attention to tax laws. If you are well off, that is your single largest expense.