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Ask HN: Are RSUs worth your loyalty?

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Ask HN: Are RSUs worth your loyalty?

#1
I have been in the industry for quite sometime and received many different benefits from all types of employers. RSUs have been one way I determine my job security or lack thereof. What benefits or lack thereof do RSUs have for Engineers or Engineering Leaders?

Re: Ask HN: Are RSUs worth your loyalty?

#4

An 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?

Re: Ask HN: Are RSUs worth your loyalty?

#5
post #4

An 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?

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 1. And in some rare cases with huge stock growth you can see extremely large compensations as a result, but otherwise they are just like normal salary.

Re: Ask HN: Are RSUs worth your loyalty?

#7
post #4

An 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?

I believe RSUs give your employer some friendly tax consequences. Aren’t they allowed to be written off?

IMO people allocating RSUs are no safer than an engineer. They can easily get replaced. As a matter of fact, leadership can change directions at any time and now put you in a position where you’re miserable every day.

I see the two have perhaps some correlation but because you’ve been given a decent grant doesn’t guarantee job security. Too many other factors involved.

Re: Ask HN: Are RSUs worth your loyalty?

#9
post #4

An 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?

Alternatively, RSUs are a way of giving you what feels a little like money now, but if they change their mind later they don't have to pay you. Why would they pay you at all if they did not value you? RSUs are worth less than equivalent cash, getting RSUs should signal less commitment than a cash bonus.

To answer the original question, no, not worth loyalty, but no money is. You can think of them as a slightly complicated raise. That being said, over the past 10 years, RSUs have been very good for a lot of tech workers. They may or may not continue to be good.

Re: Ask HN: Are RSUs worth your loyalty?

#10
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.
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