3 ms·
Unlike ESPPs (which you essentially buy with part of your paycheck) RSUs are pay with strings, so you usually don't have a choice between money and RSU. You ca
by gorjusborg 3y ago
Unlike ESPPs (which you essentially buy with part of your paycheck) RSUs are pay with strings, so you usually don't have a choice between money and RSU.
You can think of RSUs as 'golden handcuffs' compensation. The point is to reward you, while discouraging you from ever leaving because there will always be some that are not vested.
- 4ad 3y agoYou always have a choice between RSUs and cash. Negotiation is always on the table regardless of what anybody will tell you. Of course, it might be that you don't have enough negotiating power, but you can always choose another job. Personally I will never work at a place where I can't negotiate out of RSUs.
- gorjusborg 3y agoYou are talking about initial grant. I am talking about recurring compensation. I am talking corp, you probably startup. In a corporate environment you'd not last long trying to renegotiate your comp every year.
- michtzik 3y agoWhy should I be more discouraged from leaving because of unvested RSUs than I would be because of future unpaid salary (cash)?
- edmundsauto 3y agoSince all companies assume their stock will go up from time of issue, you may have been promised $100k in stock that is now worth $200k. So your initial "cash" future promises are now worth more. Lots of people at e.g. Meta are in this situation since their meteoric rise.
- whoknew1122 3y agoAt least where I work, RSUs are often dangled to you as a way to justify a lower base salary. RSUs are built into the 'compensation philosophy', wherein the RSUs are combined with salary to calculate total compensation. You're underpaid with regard to salary, so you'll lose a lot more by foregoing RSUs than you would if you were just paid a fair base salary without RSUs. The other day I was talking to my wife about my frustrations at work, and she said "Well, just don't quit before you get that RSU vest." And I'm sure I'm not the only one who has had such conversations.
- deleted 3y ago[deleted]
- gorjusborg 3y agoYou shouldn't, but that's the psychological trick at play. They are betting that your loss aversion will tip the balance a little in their favor.