Earlier quoted context omitted.
If you get fired, unless it qualifies under some due cause, the options should immediately vest.
Did you just make that up?
Literally how my options are written.
Ask HN: Are RSUs worth your loyalty?
101–110 of 110 posts
Re: Ask HN: Are RSUs worth your loyalty?
#102Your loyalty is to doing your job to the best of your ability and trying to improve as much as is realistic, assuming all other things being equal by which I summarily mean you don't work in a toxic place.
As for RSU's, as others have mentioned, it is great to think of it as additional money and base everything on your base pay (pun unitended). Never sign up for a job where your base pay may vary based on RSU grants, I am surprised to read something to that effect on this thread.
As for job security, I don't think it is a function of your role, salary base pay or stock grants. It is a function of market dynamics and how your company is doing well in the space it operates in, so it is our job to keep an eye on that. If you see winds of change that may hurt you, one better ensure not getting caught in the crossfire.
So I think it is better to be loyal to your own career and the good side effect of that is being loyal to your role and hence your current employer!
Re: Ask HN: Are RSUs worth your loyalty?
#103You should think of RSUs no differently than you think of your paychecks. There is a scheduled date (every 2 weeks for my paycheck, every 6 months for my RSUs) where I will be given some dollars if I am still working here. I will pay income tax on that income. One is in the form of money and the other is in the form of stocks, but really you should sell those stocks and buy something more stable and not tied to your…
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years. If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of sha…
Wait, how did they know that sort of thing though? Why would you show them?
Re: Ask HN: Are RSUs worth your loyalty?
#104You should think of RSUs no differently than you think of your paychecks. There is a scheduled date (every 2 weeks for my paycheck, every 6 months for my RSUs) where I will be given some dollars if I am still working here. I will pay income tax on that income. One is in the form of money and the other is in the form of stocks, but really you should sell those stocks and buy something more stable and not tied to your…
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years. If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of sha…
Is $10,000 in RSU over 4 years significant, in comparison to what the FAANG gives out?
This sounds like a pittance. It’s only an extra $208/month. It doesn’t even pay for your average monthly gasoline expenses.
And it’s even less than what some companies give out for annual Christmas bonuses. It sounds like these companies give out these fake RSUs in order to avoid having to distribute a meaningful annual bonus.
Re: Ask HN: Are RSUs worth your loyalty?
#105hack shiwo
Re: Ask HN: Are RSUs worth your loyalty?
#106An odd question. RSUs are part of TC, that's it. It is completely unrelated to job security. What has led you to think that there is a relationship?
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?
You've completely misunderstood vesting. It's not to keep you there for extra time. You can consider your base salary in terms of dollars per day, week, pay period, month, quarter, year, or FOUR YEARS. Any time span you like. Your RSU grant is simply scaled to four years instead of 1 year, or 1 month for that matter.
The point of the RSUs vesting, instead of just being granted all at once, is that you are incentivized to put in a real effort. If your efforts help result in the company doing well, you get to share in the profit -- your $1 award today becomes $5 by the time it vests. The value of your RSU increased in direct correlation to the value that YOU ADD to the company. It gives you skin in the game and keeps people working hard.
In fact, management is not incentivized to be stingy with some small "finite" number of RSUs. They are incentivized to hand them out liberally, giving everyone lots of reasons ($$$) to work hard hard hard.
Re: Ask HN: Are RSUs worth your loyalty?
#107Earlier quoted context omitted.
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years. If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of sha…
Is $10,000 in RSU over 4 years significant, in comparison to what the FAANG gives out? This sounds like a pittance. It’s only an extra $208/month. It doesn’t even pay for your average monthly gasoline expenses. And it’s even less than what some companies give out for annual Christmas bonuses. It sounds like these companies give out these fake RSUs in order to avoid having to distribute a meaningful annual bonus.
[deleted]
Re: Ask HN: Are RSUs worth your loyalty?
#108Earlier quoted context omitted.
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years. If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of sha…
Wait, how did they know that sort of thing though? Why would you show them?
By "they" I guess you mean the people I was interviewing with. I showed them and it was mistake which I later learned not to repeat. For my current employer we worked out the RSU details without going into what I was paid earlier.
Re: Ask HN: Are RSUs worth your loyalty?
#109Earlier quoted context omitted.
My experience has been that the value of RSUs can be unstable to be considered as a paycheck. My last employer had a price based vesting. For example, they gave me $10000 RSU vesting over 4 years. Then they used the current share price, say $10 as the fair value. 10000/10 = 1000 RSU vesting over 4 years. If within those 4 years, share values go down below $10 I have made a loss. Because $9 * 1000 = $9000 worth of sha…
Is $10,000 in RSU over 4 years significant, in comparison to what the FAANG gives out? This sounds like a pittance. It’s only an extra $208/month. It doesn’t even pay for your average monthly gasoline expenses. And it’s even less than what some companies give out for annual Christmas bonuses. It sounds like these companies give out these fake RSUs in order to avoid having to distribute a meaningful annual bonus.
These are not US salary figures.
If you consider the salaries being in the range of $2-3k a month. $208 is an extra 10% a month. I'd still consider RSU as a bonus than a paycheck.
Re: Ask HN: Are RSUs worth your loyalty?
#110You should think of RSUs no differently than you think of your paychecks. There is a scheduled date (every 2 weeks for my paycheck, every 6 months for my RSUs) where I will be given some dollars if I am still working here. I will pay income tax on that income. One is in the form of money and the other is in the form of stocks, but really you should sell those stocks and buy something more stable and not tied to your…
Or if the company is sold before you vest, the new management can decide not to honor your RSUs. It happened to me!
You're company decided to give you a pay cut. They wrapped that present around reasons like a buy out, but that's what they did. Who cares if it's your new management or old management, it's your employer and that was what they chose to do.
It's no different than if they said hey, we're going to pay you less money every paycheck, because .
All you can do is ask if your remaining pay is worth the work you do.