3 ms·
What’s the difference? (Genuine question)
by edmundsauto 4y ago
What’s the difference? (Genuine question)
- metadat 4y agoOther FAANGs have largely transitioned to dollar value awards, meaning the amount you vest is predetermined and disconnected from the stock price. Corporate bean counters did the math and realized they were leaving money on the table, on average. One ant's contribution doesn't typically make or break a bigco.
- jsnell 4y agoHow is that even share-based compensation at that point, if it is totally detached from the share price? It sounds more like a sign-up bonus paid out over four years (for the initial grant; a performance-based bonus for refreshers).
- metadat 4y agoYep, congrats jsnell, you get it. On average, the stock price goes up. Why let the minions soak up those BPS (basis points)?
- ahahahahah 4y agoAFAIK having worked at several FAANG and discussing with others, this is just not true. No company is doing anything like that and calling it stock awards or RSU or stock-based compensation. Most FAANG companies (almost certainly including Google) are doing dollar value stock awards, but those only affect how the number of awarded stocks is computed. Those awards still vest over some period and employees gain or lose based on the difference in the stock price from when they are awarded until they are vested.
- ahahahahah 4y agoHere's a good beginner-level intro to how this works: https://blog.myrawealth.com/insights/how-to-interpret-your-facebook-benefits https://blog.myrawealth.com/insights/how-to-interpret-your-f...