FB RSU Understanding
How does FB RSU work? Like if one is offered 400k (just for simple maths case) worth RSU/4 year, that comes to 100k/Yr. How is this price determined as between offer and joining share price will change. At the time of joining and RSU grant does this mean you are given total number of shares worth 100k based on the price it’s trading at that time? Like at offer the price is $200(hypothetically). So that makes it for 100k/200= 500 shares. But when you join and RSU grant time price is $100. So does this mean you get 100k/100=1000 shares? Question I am asking is that this offer number for RSU money is held as constant and shares allocated accordingly or it’s just the share price that is held constant. Thnx
I don’t think so. It’s the total value of grant which is offered. Not number of shares.
Your job offer has the dollar amount in it. Once you start, you get granted shares based on the historical price the month before you start. That remains the number of shares you have, price movement thereafter is to your gain or loss. There are additional grants during your employment based on performance, etc. Most RSU programs work like this, with some differences in grant price calculations.
That means if current price is $100 and offer is $100k/Yr then if at joining price is $100 u get 1000 shares. If price goes to $50 you get 2000 shares. So the fixed amount of grant remains constant and it’s the share count that changes based on the price at the time. After grant obs if price falls ur loss. Is this correct?
Dude once granted # of shares remain same. If stock price drops you still get same number if it goes up if you still get same number..
Your offer would have value of stock. Exact number is determined based on monthly avg price of joiningMonth-1
Ask your recruiter, they will be happy to explain and won't troll you like blind will.
You are granted RSU at a set price - irrespective of the current market price. Ex - 100k worth rsu granted at $200 each would be 500 in total. They will vest according to the schedule and will be in your account after the deduction of their current worth. So in reality - if the share price goes below 200, you loose money because the number of Rsu you will get is already set from the initial grant.
It’s not a set price. It’s the price of month prior to joining month. So if the stock price falls one month prior to joining month then u end up getting more shares as the set is the grant dollar value.
Pretty straight forward. Literally however the price is determined when you join (varies by company), once the price is set it is divided by 4 years and that's how much you get each year. Period. No matter the fluctuations in stock price over the 4 years. Say you get 1000 per year and it's $200 when you join. Price goes to $1000? You still get 1000 per year. Price goes to $10000000? You still get 1000 per year. Price goes to 0.000001? Still getting 1000 per year
In Adobe it works like most people have told above i.e. number of shares is decided based on the stock price in the month you join. In Amazon it is the other way round i.e. number of stocks is decided during the offer only.....I suffered loss in Adobe due to this. Me and my friend got offer in March. He got 40k and i got 44k rsu amount. Hiwever he joined in March only but I joined in May. Now, the price in May has shooted up from 450$ in March to 490$ in May. Now, he also has 90 stocks and I also have 90 stocks. So, basically the 4k$ that I got extra in the offer is now gone and we both are on the same page now....Feeling so bad abt it...
I’m pretty sure most people negotiate number of shares. Then generally eventually some committee at a company approves your grant. Edit: some companies do share price, so the amount received will change.