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My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gav
by thisisit 7y ago
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting.
For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years.
If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of shares. And it happened with my last employer.
In such cases, it is no longer a paycheck. Rather a bonus which might or might not pan out.
When I started searching for a job it actually put me at a disadvantage. Whenever I talked with employers who had no RSUs benefit plans they always tried to reduce the value of my total paycheck. The refrain often was "You said $10 but I see only $9. So, you are not getting $10000 shares rather $9000 worth of shares".
- Kihashi 7y agoWait, how did they know that sort of thing though? Why would you show them?
- thisisit 7y agoBy "they" I guess you mean the people I was interviewing with. I showed them and it was mistake which I later learned not to repeat. For my current employer we worked out the RSU details without going into what I was paid earlier.
- blackrock 7y agoIs $10,000 in RSU over 4 years significant, in comparison to what the FAANG gives out? This sounds like a pittance. It’s only an extra $208/month. It doesn’t even pay for your average monthly gasoline expenses. And it’s even less than what some companies give out for annual Christmas bonuses. It sounds like these companies give out these fake RSUs in order to avoid having to distribute a meaningful annual bonus.
- deleted 7y ago[deleted]
- thisisit 7y agoThese are not US salary figures. If you consider the salaries being in the range of $2-3k a month. $208 is an extra 10% a month. I'd still consider RSU as a bonus than a paycheck.