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RSUs are refreshed annually. So if the stock price is now in the doldrums, at least you can hope to get the refresher at a good price in February (or whenever).
by pavlov 4y ago
RSUs are refreshed annually. So if the stock price is now in the doldrums, at least you can hope to get the refresher at a good price in February (or whenever).
- ryandrake 4y agoThis is not true for all tech companies, including FAANGs. For some (many?), the first grant is all you are entitled to, and subsequent "refresh" grants are based on performance, manager discretion, or other non-guaranteed criteria. Hence the "4 year cliff" many people complain about.
- pavlov 4y agoTrue. I was talking about Meta specifically (but failed to be explicit about that). The refreshers at Meta are mostly mechanical based on your role and level, and they’re allocated in dollars even though the grant is converted to shares at a specific date.
- adam_arthur 4y agoI imagine the dollar amount will get lowered over time as the stock price falls though. Otherwise the company is creating a lot of dilution for shareholders. e.g. to reach the same dollar amount requires more shares. And Meta is already crashing explicitly because their operating costs are out of control and outpacing their earnings growth But that would just be pragmatic, they may not actually be doing that. Good management in this situation would be refreshing grants only for the top half of performers and letting the others choose to leave, IMO
- whimsicalism 4y agonot in most companies they arent