4 ms·
This piece is bullshit “RSUs are often considered less preferable to grantees since they remove control over when you owe tax.” Who the fuck cares when you pa
by xivzgrev 7y ago
This piece is bullshit
“RSUs are often considered less preferable to grantees since they remove control over when you owe tax.”
Who the fuck cares when you pay tax? A small % of people will have enough value to worry about that. The vast majority of people tho have a bigger worry: the stock is worth less than what they pay to exercise, because when you leave your company you have to exercise em or lose em.
Dual trigger RSUs solve that. I don’t have to pay a freakin’ dime whether I stay or leave. I keep my vested RSUs and ride off into the sunset and if they someday become worth something, the company just withholds some shares to pay the tax. Again no up front cash when I leave the company and no large tax bill.
AND I get to keep the whole value of the share. For ISO you only get delta between exercise price and strike price. If my RSUs are $5 or $15 apiece who cares, it’s all risk-free gravy / upside. If I have ISOs I’m worrying about strike price and whether it’s worth it to exercise.
I don’t know who in their right mind would want ISOs over RSUs.