4 ms·
It seems unlikely that regular employees would be issued RSUs. Tax is due at vest, and you can't liquidate to fund the tax bill.
by rahimnathwani 9mo ago
It seems unlikely that regular employees would be issued RSUs. Tax is due at vest, and you can't liquidate to fund the tax bill.
- glpgeFwac 9mo agoThe usual move here is "double trigger" RSUs that don't vest until a liquidity event, thus no taxes due until said liquidity event.
- rahimnathwani 9mo agoAre those common for regular employees?
- milkshakes 9mo agohighly common
- Romario77 9mo agoRight. Plus often the tax is paid out of RSUs given, you just get less in RSUs, some is subtracted to pay tax.
- haneefmubarak 9mo agoThere's double trigger RSUs and so on that allow you to have reasonable tax treatment, due to the theoretical threat of loss if liquidity isn't available. I worked at a company that had this at least while I was there.
- baumy 9mo agoI was a regular SDE at brex for a couple years and my various documents about comp say I have RSUs, and carta says so as well. I've never bothered to understand the details since none of the private companies I've worked for have had the non-cash portion of their comp be worth anything but $0 before.
- catlover76 9mo ago[dead]
- dalyons 9mo agoNope, you as a company owner are highly motivated to shift to RSUs once you hit a certain valuation and number of employees. Everyone does it.
- hrimfaxi 9mo agoCan you expand on why at a certain valuation and size you would shift?