3 ms·
For public companies with monthly vesting without a cliff (FB, Goog), TC is actually a good model for what the company deposits in your bank account at the end
by tschwimmer 4y ago
For public companies with monthly vesting without a cliff (FB, Goog), TC is actually a good model for what the company deposits in your bank account at the end of the month.
For private startups, it's obviously a less good measure both because you don't get the incremental liquidity over the course of the year and also because even when you get that big chunk of shares at the end of the year, it isn't liquid.
An interesting middle case is public companies that have a 1 year cliff. I've heard Amazon has this. Anyone care to chime in about how TC is calculated there?
- alephnerd 4y agoWhen NCGs say "TC" (or at least the NCGs I've interacted with) they calculate it as Base_Salary+Total_Equity_Grant, when in reality it should be Base_Salary+(Total_Equity_Grant/Vesting). I've seen a couple experienced (10+ YoE) people do the same mistake as well, but this is all anecdotal of course