Sorry everyone if this is a newbie question. My understanding is that engineers in tech companies after working for 5 to 10 yours depending on which company they work at, they usually are able to save up quite abit due to the RSU that they receive as most large tech companies doubled their stocks in the past 5 years if not more. For instance, an engineer who started working 5 years ago at company X with an average salary of 145k per year and was given 70K RSU annually ($280k vested over 4 yrs which is $70k / yr). After 5 years of comfortable living with the 145k salary he would be collecting 5 * 70 * 2 = 700k from RSUs. Is this more or less a true story or the reality is very different? If so how different is it? Thank you!
No one gets rich working for someone else. Well a few people. Like the ceo of google.
Oh yea, you won’t be rich. I agree. OP, there’s a new definition of rich in this league
Define semi rich. Also you didn’t subtract taxes from rsu? What’s the multiplier of 2?
If you joined FB in 2012/2013, stock was in the 20s. It’s now 200 (+/- 10 or 20 over the past year or so).
Your math is off. It would probably be $70k split over multiple years. Plus it counts as income when it vests, so a good chunk immediately goes to taxes. At the end, you might have enough for a down payment on a modest condo in a not-so-great neighborhood in Silicon Valley.
The person is offered $280k (70k / yr) in RSU. Vested over 4 yrs. What you mean by $70k split over multiple years?
The $70k is split over 4 years. That’s $17.5k/year before tax.
It can be true. Except most companies give 4 year packages. Some companies give refresh packages to extend you past that.