CompensationMay 14, 2018
NewGtzl87

FB RSU grant, cash value vs RSU count?!?

Hi. Not sure why I didn't bother to think of this when I accepted, but how does the RSU grant work for employees? When I got my offer, the RSU grant was translated to me in terms of cash value, i.e. $100,000. My previous job, RSU was offered to me in terms of count, i.e. 1,000 RSU's. Is this just semantics? Or does Facebook actually award RSU's in terms of cash value at the time it vests, vs the actual RSU count based on value of when you start? Not sure if that's confusing or not. Assuming FB stock continues to climb, being award the cash value when the stock actually vests would mean I actually stand to lose a lot of value vs. if it were calculated by RSU count. For example, let's say FB tells me as a new hire, that I'm getting $100,000 over 4 years, vesting every quarter. That's $6,250 in cash amount every quarter. Let's assume every quarter, FB stock increases in value. If FB awards based on cash value, that means every RSU count in each vest is actually less and less. i.e. 100 the first quarter, 95 the second quarter, etc. etc. to the point where at the end of 4 years, you'd be getting considerably LESS RSU's than when you first started. At my previous employer, as part of my package they gave me an RSU count, not cash value, so ex. 1,000 RSU's. That's roughly 63 RSU's vested every quarter, regardless of value. If the stock appreciates every quarter, that means the value of that 1,000 RSU's when I first started, is a lot less than after 4 years, which is a better scenario than if it were granted based on cash value.

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JW Player tinkertoll May 14, 2018

The amount of shares that your RSU dollar value turns into is based on the average share price the month prior to your vesting commencement date. This means your number of shares is "fixed" when you start, and you will not be negatively affected by a rising share price. Just hope the stock suffers a setback the month before you join!

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Gtzl87 OP May 14, 2018

Ah, thanks for the info. So if my start date is 5/29 (presumabley the vesting commencement date?), the RSU grant (based off an ex. $100k in RSU ), is based off the value on 4/29?

Square Yes ma’am May 14, 2018

Yes basically

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203grxoiy May 14, 2018

If you join on May 29, you will get FB at ~164 (avg closing price in all trading days of April). So the number of RSUs you have will be $x/164. Starting on May 29 is a really smart decision btw. On the other hand, if you have to start in June 1st week, you would get the average price of May which will be much higher than 164.

Apple nzWU51 May 14, 2018

Where can I get this info?

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203grxoiy May 14, 2018

I just gave it to you :)