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RSUs that you can sell are effectively cash, not a lotto ticket.
by edmundsauto 3y ago
RSUs that you can sell are effectively cash, not a lotto ticket.
- AndrewKemendo 3y agoThey depend on the stock which is totally unpredictable For example, literally the day before I started at my last company, their stock went from $120 to $40 So yes it’s a lotto ticket
- edmundsauto 3y agoI just… sell the stock when it vests? I guess I can see your pov is consistent as long as you consider every stock as a lotto ticket, but I don’t think that’s the typical opinion.
- slt2021 3y agoProblem with this approach is RSU grant price is fixed at when you join the company. You could sign job offer with $1M in RSUs at $100/sh for 10k shares, but you would have vested only $500k worth of shares if price decreases to $50/sh a year after, when you reach cliff vest So selling at vest does not decrease your risk between RSU grant date and vest date