4 ms·
Stock at a big tech company is incredibly unlikely to suddenly end up worthless. Let's say your base pay is $160k and you have $240k in RSUs vesting each year.
by bilalq 3y ago
Stock at a big tech company is incredibly unlikely to suddenly end up worthless. Let's say your base pay is $160k and you have $240k in RSUs vesting each year. It would be ridiculous to take another offer of $250k or $300k cash elsewhere. Maybe at $350k you might prefer straight cash. Someone else's cutoff might be at $375k.
In the end, you can't ignore it.
- jwestbury 3y agoNetflix dropped >70% in six months in late 2021/early 2022. That $400k total comp package would suddenly be $230k or so -- less than the $300k cash offer. I recognise Netflix offers are usually all-cash, but it's an illustrative example. Feel free to substitute with Facebook stock. As a bit of real-life anecdata, I knew someone who struggled to pay their mortgage when AMZN dropped ~30% in 2018.
- maerF0x0 3y agoThe real trick is to realize that having a 4 yr grant valued at present value is tough. only hindsight can give you a perfect picture of what you were compensated. This is partly why folks should always be selling at least a portion of their equity and shifting it into other assets smoothly as they vest. My middle ground was to sell ~50% of my vesting meaning I took some risk off the table, but also wouldn't feel left out if it moonshot. People with economics (game theory) degrees likely could figure out a better way to deleverage + prevent fomo.