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I worked in the UK at a FAANG, so I was on a different bonus system, but my US colleagues had a very significant lock-in. Both your starting bonus and annual bo

I worked in the UK at a FAANG, so I was on a different bonus system, but my US colleagues had a very significant lock-in. Both your starting bonus and annual bonuses were implemented in terms of share grants that vested at 25% each year. I heard from several of these colleagues that the annual bonuses were often about the same as the base salary, so for some of these guys it was around $200k. So, at any given time they had between $150k and $200k locked up in un-vested shares that would be lost if they left the company. It's framed as a benefit rather than paying someone to stay, but ultimately it's structured this way so it serves the same purpose of providing a strong disincentive to leaving.

fire_lake 2y ago
And this is why VCs love it when founders quit FAANG to work on their idea. It’s a strong signal.
pledg 2y ago
Which FAANG in the UK doesn't follow the same long term incentives with RSU as their US offices? All that I am aware of do for engineers.
- ralferoo 2y ago
  For various reasons, I don't want to name the employer, but yes it does happen. I guess it depends on your interpretation of "long term"... Those that are hired to be permanently based in the UK have an RSU-based system. Those that are hired with the intention of relocating to the US instead get a smaller lump-sum signing bonus, a small lump-sum annual bonus while in the UK and the RSU incentives only start after moving to the US, and starting a fresh employment contract. In theory, employees should only be in the UK for just over a year maximum, since if the H-1B visa petition isn't successful, you can apply for an L-1 visa instead after 12 months of employment. In my case, moving to the US got indefinitely postponed due to COVID, so I stayed in the UK for 23 months before I quit. Obviously, beyond 2 years is moot as I'd already quit, but if I'd worked another month and had RSUs from the start, I would have been about $100k better off after those first 2 years. The next 4 years would have been worse off too, as the RSU allocation for the starting bonus would have been for significantly fewer shares due to the rise in share price over those first 2 years but the dollar value of the bonus would have stayed the same.

fire_lake 2y ago

And this is why VCs love it when founders quit FAANG to work on their idea. It’s a strong signal.

pledg 2y ago

Which FAANG in the UK doesn't follow the same long term incentives with RSU as their US offices? All that I am aware of do for engineers.

ralferoo 2y ago
For various reasons, I don't want to name the employer, but yes it does happen. I guess it depends on your interpretation of "long term"... Those that are hired to be permanently based in the UK have an RSU-based system. Those that are hired with the intention of relocating to the US instead get a smaller lump-sum signing bonus, a small lump-sum annual bonus while in the UK and the RSU incentives only start after moving to the US, and starting a fresh employment contract. In theory, employees should only be in the UK for just over a year maximum, since if the H-1B visa petition isn't successful, you can apply for an L-1 visa instead after 12 months of employment. In my case, moving to the US got indefinitely postponed due to COVID, so I stayed in the UK for 23 months before I quit. Obviously, beyond 2 years is moot as I'd already quit, but if I'd worked another month and had RSUs from the start, I would have been about $100k better off after those first 2 years. The next 4 years would have been worse off too, as the RSU allocation for the starting bonus would have been for significantly fewer shares due to the rise in share price over those first 2 years but the dollar value of the bonus would have stayed the same.