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> So what they've done is nearly completely untie compensation from the stock price. But it IS tied to the change in price- right?
by knodi123 4y ago
> So what they've done is nearly completely untie compensation from the stock price.
But it IS tied to the change in price- right?
- jxf 4y agoNo. Your total compensation is fixed. You're deciding how much of it goes to stock (as opposed to your _grant size_ being fixed).
- pc86 4y agoUsing the example above, you get $25,000 in stock every 3 months. So the number of shares are variable, so the price is irrelevant to you. If you sell as soon as you get it, it's the same as $25k cash, e.g. completely divorced from the stock price. If it was tied to the stock price, like every other RSU program on the planet, you'd get x number of shares. So as stock price goes up, your compensation goes up. Your compensation is tied to the stock price.