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When you get an offer of $100K cash + $100K in stock, that's before appreciation. So 3 years from now your equity is appreciated but your cash is not, so you ge
by alisonkisk 5y ago
When you get an offer of $100K cash + $100K in stock, that's before appreciation. So 3 years from now your equity is appreciated but your cash is not, so you get $225K in cash equivalent.
- baobabKoodaa 5y agoThis is false. If you immediately exchanged your cash to stock (as I specified in the post that you are replying to) then 3 years from now your "cash" option is worth exactly the same as your "cash + stock" option.
- rgcase 5y agoThis is wrong. It would be true if you received all the cash in a lump sum as soon as you're hired, and you used it to buy stock, but if your cash "vests" in the same way as equity typically does then you'd lose out on the opportunity for it to appreciate before vesting like shares can.
- pb7 5y agoNo one is giving you 4 years of paychecks on day 1. But they do grant 4 years of equity that is appreciating while you’re waiting for it to vest. That’s the difference. Cash is worse.