DoorDash removing 1-year cliff for equity grants • Hacker News Board

Re: DoorDash removing 1-year cliff for equity grants

#161

Post by paxys » Thu, Jul 08, 2021, 12:47 AM UTC

deregulateMed wrote: post #112

paxys wrote: post #87

Earlier quoted context omitted.

I know many new college grads who got offers from multiple tier-1 and tier-2 silicon valley software companies in the same range as what I got as a senior engineer with 8 years of experience a few years ago. I'm talking base salary $160K-$180K, $300K equity grant, 10% annual bonus, sign on bonus, relocation...the works. Not to say that everyone can simply walk in to these jobs (and they shouldn't!), but if a graduati…

Is it really "the works" if you have to move to SV? I'm profiting 100k/yr in the Midwest, and it's a junior-ish position. Could be worse, could be Tesla 90k/yr revenue.

Bay area is expensive for sure but such salary comparisons are always exaggerated. Housing is the only thing that makes a significant difference to the annual budget for a ~22 year old, and even a $20K salary bump is more than enough to cover the difference in rent and other basic monthly expenses. It will almost always be worth it career-wise and financially to work in silicon valley for a few years, especially at the start of your career.

Re: DoorDash removing 1-year cliff for equity grants

#162

Post by bentlegen » Thu, Jul 08, 2021, 12:58 AM UTC

mynameisvlad wrote: post #58

bentlegen wrote: post #31

The article seems to intentionally obscure whether the previous vesting period was quarterly or not. My cynical read of this is that they are changing the vesting schedule to quarterly (instead of monthly, which is more typical), and burying the lede on that by painting this as a benefit to employees (when it really only impacts new employees). Does anyone know if this is true or not?

> instead of monthly, which is more typical Is it? Almost all my and my friends' RSUs have been quarterly, with a typically 1 year cliff as described in the article.

Maybe this is new, but in my 15 year career working for startups, I've only ever had monthly vesting.

Re: DoorDash removing 1-year cliff for equity grants

#163

Post by bern4444 » Thu, Jul 08, 2021, 1:00 AM UTC

My company also does not have a 1 year cliff and it's wonderful.

I switched a few months ago from a company that did. It was a farce how my old company, at the end of the year, would say your compensation for next year is $X but part of X was paid out over the next 4 years with a 1 year cliff each year. Just one of many reasons why I left.

My current company pays out equity every 3 months and it's incredible.

The only good thing my old company did was pay every week instead of every 2 weeks. I know most companies do every 2 weeks; I was surprised at how large a difference getting paid every week vs every 2 weeks makes. Not sure why the extra week between is so impactful but it really is.

Re: DoorDash removing 1-year cliff for equity grants

#164

Post by scribu » Thu, Jul 08, 2021, 1:02 AM UTC

bern4444 wrote: post #163

My company also does not have a 1 year cliff and it's wonderful. I switched a few months ago from a company that did. It was a farce how my old company, at the end of the year, would say your compensation for next year is $X but part of X was paid out over the next 4 years with a 1 year cliff each year. Just one of many reasons why I left. My current company pays out equity every 3 months and it's incredible. The onl…

> I was surprised at how large a difference getting paid every week vs every 2 weeks makes.

In what way?

Re: DoorDash removing 1-year cliff for equity grants

#165

Post by xyzelement » Thu, Jul 08, 2021, 1:05 AM UTC

almost_usual wrote: post #6

I was expecting a catch with the equity grant period shortening but it seems it’s still four years? If so this is great for employees.

Wouldn't grant period shortening be even better for employees? (ie, not a catch) ... Did you mean lengthening?

Re: DoorDash removing 1-year cliff for equity grants

#166

Post by briefcomment » Thu, Jul 08, 2021, 1:07 AM UTC

scribu wrote: post #164

bern4444 wrote: post #163

My company also does not have a 1 year cliff and it's wonderful. I switched a few months ago from a company that did. It was a farce how my old company, at the end of the year, would say your compensation for next year is $X but part of X was paid out over the next 4 years with a 1 year cliff each year. Just one of many reasons why I left. My current company pays out equity every 3 months and it's incredible. The onl…

> I was surprised at how large a difference getting paid every week vs every 2 weeks makes. In what way?

I would think, psychologically, it feels more of a two way relationship, rather than one way (i.e. you working constantly for the company with them only occasionally reciprocating)

Re: DoorDash removing 1-year cliff for equity grants

#167

Post by crooked-v » Thu, Jul 08, 2021, 1:08 AM UTC

scribu wrote: post #164

bern4444 wrote: post #163

My company also does not have a 1 year cliff and it's wonderful. I switched a few months ago from a company that did. It was a farce how my old company, at the end of the year, would say your compensation for next year is $X but part of X was paid out over the next 4 years with a 1 year cliff each year. Just one of many reasons why I left. My current company pays out equity every 3 months and it's incredible. The onl…

> I was surprised at how large a difference getting paid every week vs every 2 weeks makes. In what way?

While this isn't much of a company relationship thing: If you're getting paid every 2 weeks, sometimes you'll get paid the first/third week of the month and sometimes the second/fourth, which can be a pain if you're trying to keep a consistent amount in a checking account while also having bill pay and auto-transfers to savings/investment accounts.

Or, tl;dr, it makes it easier to automate money without leaving a large buffer of cash in a checking account.

Re: DoorDash removing 1-year cliff for equity grants

#168

Post by djrogers » Thu, Jul 08, 2021, 1:08 AM UTC

bentlegen wrote: post #162

mynameisvlad wrote: post #58

Earlier quoted context omitted.

> instead of monthly, which is more typical Is it? Almost all my and my friends' RSUs have been quarterly, with a typically 1 year cliff as described in the article.

Maybe this is new, but in my 15 year career working for startups, I've only ever had monthly vesting.

Odd, 21 years of startups here and have only ever seen annual or quarterly vests until my current role (which I just started).

Re: DoorDash removing 1-year cliff for equity grants

#169

Post by pottertheotter » Thu, Jul 08, 2021, 1:13 AM UTC

spotman wrote: post #159

jamiequint wrote: post #158

Earlier quoted context omitted.

"I declined an offer from a known and well funded startup because of a one year cliff on equity" You might as well not bother interviewing at any startups if this is a deal-breaker for you. Whether you think it's fair or not this is an extremely standard term and no company is going to alter their employee stock grants on a one-off basis.

Not really true. Have achieved multiple companies removing the 1 year cliff for me.

Anything in particular you said? We're you coming from a strong position to bargain for that?

Re: DoorDash removing 1-year cliff for equity grants

#170

Post by brutus1213 » Thu, Jul 08, 2021, 1:16 AM UTC

spotman wrote: post #159

jamiequint wrote: post #158

Earlier quoted context omitted.

"I declined an offer from a known and well funded startup because of a one year cliff on equity" You might as well not bother interviewing at any startups if this is a deal-breaker for you. Whether you think it's fair or not this is an extremely standard term and no company is going to alter their employee stock grants on a one-off basis.

Not really true. Have achieved multiple companies removing the 1 year cliff for me.

The one year cliff is not that problematic to me since I would expect I am getting paid market, and the options are like a hiring bonus (which you often must return if you quit within a year). What am I missing? Is people really worried that a startup whose stock has risen will fire a productive employee?

That said, I have seen 5 year vesting (which seemed like a red flag to me), and have heard of Amazon's schedule where you mainly vest in later years. These were bigger red flags for me than a 1 year cliff.