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I work at a smaller company, and here we convert the $ price to a number of shares by taking the 100 day VWAP of the stock from the date of the board meeting wh
by dabfiend19 5y ago
I work at a smaller company, and here we convert the $ price to a number of shares by taking the 100 day VWAP of the stock from the date of the board meeting where your grant is approved.
- flatiron 5y agoEither we work at the same place or that’s very common. When I joined I got a random email that said “your rsu $ to shares conversion was X shares and here’s your schedule” and my schedule is all in # of shares not $
- B-Con 5y agoThis is very common. It's basically the point of paying in RSUs and not in fixed dollars, to give employees incentive to care about the company/stock performance.
- echelon 5y agoYes, but then they take that calculation to grant you a set number of shares (ISOs, RSUs, etc.) that doesn't change. The value of your award grows with the growth of the company. ESPP-like programs, on the other hand, are always dollar denominated and exchanged at a set rate at the end of the offering period.
- joshuamorton 5y agoGP is correct in that some companies (Stripe, MS, others) convert the dollars to shares at vest time, while others do so at grant time. The first way makes employees lose out on an average of 2 years of stock growth.
- devoutsalsa 5y agoI had to google it... VWAP == Volume Weighted Average Price https://www.investopedia.com/terms/v/vwap.asp https://www.investopedia.com/terms/v/vwap.asp
- r00fus 5y agoI stand corrected, however, shares are fixed at time of grant is my point.
- deleted 5y ago[deleted]