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When you initially start at Google, say, you get an RSU grant that vests over 4 years. So for 4 years you are getting your salary and on some schedule also get
by bzbarsky 6y ago
When you initially start at Google, say, you get an RSU grant that vests over 4 years. So for 4 years you are getting your salary and on some schedule also getting stock. The stock can be a quite large portion of your total compensation (as in, comparable to the base salary).
After 4 years, unless you got refresher grants, your compensation is just your salary, so you effectively make less money than during the first 4 years. At that point the incentive is to move to some other company and start the 4-year clock again...
- pmkiwi 6y agoOk got it! So I guess the only way for Google to keep the best performers is to eliminate this cliff by giving RSU and/or offering a significant pay increase. Thank you for the explanation ;)