4 ms·

With falling stock prices in Big Tech, would joining them be any better? Your RSU will keep falling for awhile.

astrange 5y ago
Falling when it gets granted is good, as long as it goes back up before it vests, which is at least a year away. The history of share prices is that something good happens at least once a year.
- sharpy 5y ago
  Yep. Companies make offers based on dollar figures. Typically the average price of first month is what is used to determine how many shares they will grant for RSU. So now is a good time to change jobs! Assuming things ever go back to normal… you will have a lot of upside. Just pick a company that you believe in.
  - nowherebeen 5y ago
    That’s assuming it will go back up. Big tech stock prices are only at pull back range at the moment, not a real decline. Time will tell, but my guess is that big tech that depends on ads will have a hard time keeping up with valuation.
    - sharpy 5y ago
      True. Between continued pandemic, inflation, and Russia… well, call me an optimistic fool. One who still has a few decades to wait it out.
- bradlys 5y ago
  The vesting schedule at big companies has been changing recently. They started vesting immediately - no more year cliff. This is because people hated being paid half their comp for a year on such a regular basis. (Makes it hard to pay for a $2-3m home)
  - scruple 5y ago
    Interesting. So, in those places RSUs are looked at / treated like a one-time performance bonus? Do those places also have performance bonuses?
    - bradlys 5y ago
      No... They're treated as part of your comp - just a part of your comp that fluctuates with stock performance. I'd read some articles about Google/FB compensation to get a better idea of how it works. Plenty of companies have been changing their comp structure to be more appealing. (getting rid of 1 year cliff, etc.)
  - auspex 5y ago
    This really doesn’t benefit employees that stay longer than a year. Let’s say I give you $100,000 in RSU over four years. Now the stock doubled at the end of the first year. Your stock is now worth $200,000 In the other scenarios they offer you $25,000 a year granted each year. You end up with $100,000 over the four years… Essentially the company is not allowing you to realize the stock price gains on your entire grant. Not a good deal if the stock price is going up.
    - bradlys 5y ago
      Again - this is not how it works. Holy shit - why are you spreading misinformation? Just read a damn article online about how it works! It’s super common knowledge!!!
      - auspex 5y ago
        There are a few different new ways companies are working out vesting rsu/options. There is the traditional 4 year grant on day of hire with a one year cliff and 25% vesting a year. The second (which I describe above) is rather than granting stock that vests over four years, it’s a single year vest that vests every quarter. In the second case you get stock over a shorter time frame but since you are getting a specific dollar amount each year but you miss out on the upside of a four year vest. Example above: If stock is at $10 a share and you get $100,000 over four years you get 10,000 shares over the four years. The stock doubles you have 10,000 shares worth $20 each after 4 years. In the second case you get $25,000 a year or 2500 shares the first year. Stock doubles. The second year you get $25k or 1250 shares. Year three.. Stock stays at $20 or 1250 shares. Year four stock at $20 or 1250 shares. Scenario 1: 10,000 shares at $20 Scenario 2: 6125 shares at $20 You’re missing out on the upside. The four year grant is better if the stock goes up. The yearly grant is better if the stock is going down. Companies expect the stock to go up. Just curious how this is misinformation?

Falling when it gets granted is good, as long as it goes back up before it vests, which is at least a year away. The history of share prices is that something good happens at least once a year.

sharpy 5y ago
Yep. Companies make offers based on dollar figures. Typically the average price of first month is what is used to determine how many shares they will grant for RSU. So now is a good time to change jobs! Assuming things ever go back to normal… you will have a lot of upside. Just pick a company that you believe in.
- nowherebeen 5y ago
  That’s assuming it will go back up. Big tech stock prices are only at pull back range at the moment, not a real decline. Time will tell, but my guess is that big tech that depends on ads will have a hard time keeping up with valuation.
  - sharpy 5y ago
    True. Between continued pandemic, inflation, and Russia… well, call me an optimistic fool. One who still has a few decades to wait it out.
bradlys 5y ago
The vesting schedule at big companies has been changing recently. They started vesting immediately - no more year cliff. This is because people hated being paid half their comp for a year on such a regular basis. (Makes it hard to pay for a $2-3m home)
- scruple 5y ago
  Interesting. So, in those places RSUs are looked at / treated like a one-time performance bonus? Do those places also have performance bonuses?
  - bradlys 5y ago
    No... They're treated as part of your comp - just a part of your comp that fluctuates with stock performance. I'd read some articles about Google/FB compensation to get a better idea of how it works. Plenty of companies have been changing their comp structure to be more appealing. (getting rid of 1 year cliff, etc.)
- auspex 5y ago
  This really doesn’t benefit employees that stay longer than a year. Let’s say I give you $100,000 in RSU over four years. Now the stock doubled at the end of the first year. Your stock is now worth $200,000 In the other scenarios they offer you $25,000 a year granted each year. You end up with $100,000 over the four years… Essentially the company is not allowing you to realize the stock price gains on your entire grant. Not a good deal if the stock price is going up.
  - bradlys 5y ago
    Again - this is not how it works. Holy shit - why are you spreading misinformation? Just read a damn article online about how it works! It’s super common knowledge!!!
    - auspex 5y ago
      There are a few different new ways companies are working out vesting rsu/options. There is the traditional 4 year grant on day of hire with a one year cliff and 25% vesting a year. The second (which I describe above) is rather than granting stock that vests over four years, it’s a single year vest that vests every quarter. In the second case you get stock over a shorter time frame but since you are getting a specific dollar amount each year but you miss out on the upside of a four year vest. Example above: If stock is at $10 a share and you get $100,000 over four years you get 10,000 shares over the four years. The stock doubles you have 10,000 shares worth $20 each after 4 years. In the second case you get $25,000 a year or 2500 shares the first year. Stock doubles. The second year you get $25k or 1250 shares. Year three.. Stock stays at $20 or 1250 shares. Year four stock at $20 or 1250 shares. Scenario 1: 10,000 shares at $20 Scenario 2: 6125 shares at $20 You’re missing out on the upside. The four year grant is better if the stock goes up. The yearly grant is better if the stock is going down. Companies expect the stock to go up. Just curious how this is misinformation?