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RSUs are worth very slightly more than straight cash compensation due to the optionality. Your compensation will go up and down as the underlying stock moves, and you are allowed to switch jobs when the stock price moves downwards.
RSUs are worth very slightly more than straight cash compensation due to the optionality. Your compensation will go up and down as the underlying stock moves, and you are allowed to switch jobs when the stock price moves downwards.
I'd rather have a dollar now versus the equivalence of a dollar in a stock which is unavailable for up to 4 years...
Even if your companies stock is out performing the market, I'd rather have a dollar now to buy company stock and keep my mobility.
Employees need to be careful to diversify their portfolio. A dollar today can be put in any type of investment, whereas RSUs can lead to folks having too much of their egg nest in one basket.
Aren't RSUs the opposite of job security? If you get fired or leave before they vest, you lose them. In the bay area they are often called golden handcuffs because developers halfway through their 4 year term often have another million in RSUs vesting, so can't go leave and work on their friend's awesome startups and the like, since the startups can't afford to match the compensation.
I would gladly wear these handcuffs :D
Aren't RSUs the opposite of job security? If you get fired or leave before they vest, you lose them. In the bay area they are often called golden handcuffs because developers halfway through their 4 year term often have another million in RSUs vesting, so can't go leave and work on their friend's awesome startups and the like, since the startups can't afford to match the compensation.
> have another million in RSUs vesting I would gladly wear these handcuffs :D
RSUs are worth more than cash if you're optimistic about the stock and worth less if you're pessimistic. Over the last 10 years they've probably been worth a lot more than cash if you held on instead of selling, but no one knows about the next 10.
Earlier quoted context omitted.
There are a finite # of RSUs which management can distribute to high performers or valuable team members vested over a period of employment time. Here’s why I feel like job security is oddly related, why would the organization want you tied to them for that vesting period if they did not value you or your efforts or want you there for that period?
Vesting period is meaningless, you get them as a part of a salary package. If I get shares vesting over 4 years then it just means that they are a part of my salary. If I leave after a year I didn't lose 3 years of shares, in the same way as I didn't lose 3 years of salary. The only time shares are different is stock growth, and since stock on average grows the shares will on average be worth more in year 4 than year…
Almost I just view the amount that vests every year as a part of my annual salary and that's it. The total is really immaterial.
RSUs are worth very slightly more than straight cash compensation due to the optionality. Your compensation will go up and down as the underlying stock moves, and you are allowed to switch jobs when the stock price moves downwards.
You still lost that money though, the optionality isn't worth anything because you gain nothing on the RSUs by switching jobs.