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But there are no tax benefits. If you get 10M in RSU that vest in 5 years and in 5 years when they vest they are now worth 20M, you get taxed for 20M of income
by mrep 4y ago
But there are no tax benefits. If you get 10M in RSU that vest in 5 years and in 5 years when they vest they are now worth 20M, you get taxed for 20M of income and not 10M income + 10M cap gains.
- Retric 4y agoThis gets more into the weeds, RSUs rarely vest evenly across time. A 10,10,40,40 has tax advantages over a 25,25,25,25 vesting schedule. Further, RSUs are only one aspect of a compensation package. If someone can negotiate both RSUs and a golden parachute then they are simply better off than taking that exact same salary in cash. The nuances of every contract are different, but it’s not difficult to construct something more advantageous than cash.