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> And generally the money will be locked up for less time than the 4 year vesting that these companies often follow. Err...4-year vesting doesn't mean the mone
by triceratops 2y ago
> And generally the money will be locked up for less time than the 4 year vesting that these companies often follow.
Err...4-year vesting doesn't mean the money is literally locked away until you hit 4 years' tenure. A $1m stock grant vesting over 4 years might pay $250-350k every year, depending on the vesting schedule and stock performance.
If a hedge fund pays $1m every 2 years then they're just paying more period. It's not the vesting schedule which causes the difference in comp.
- chollida1 2y ago> Err...4-year vesting doesn't mean the money is literally locked away until you hit 4 years' tenure No one said it did:) My point was that a typical bonus is about 2/3's employees at the moment its granted and 1/3 held back for a year sometimes two, so you get money faster than a typical 4 year vesting schedule. Does that clear things up?
- triceratops 2y agoSee my second sentence. That means the hedge fund flat out pays much more than FAANG. It's got nothing to do with vesting schedules. (BTW FAANG pays bonuses too. They're 100% the employee's when they're paid)