Curious how people think about it.
MSFT stock is nearly as good as cash 🤷🏻♂️
The vesting calendar is one thing I check.
Amazon vesting is unique 😒. Basically, how soon until you get the stock. And higher risk for PreIPO
As long as base covers my lifestyle and then some, I count FANG stock vesting in the first 12 months basically 1:1
Depends on the maturity of the company. If its seed stage or series A or B, I consider it as zero value or maybe after future rounds it will lead to some vacation money for a trip to Europe. Startups, if you are joining as employee number 10 or more, is for boosting your resume and skills. A 5 year gig at a startup that scaled from 20 people to 1000 when you were working there exponentially increases your professional net worth due to contacts, connections, and insight you have that FAANG and other unicorns are extremely hungry for.
Until the money clears in my checking account, it’s always 0.
So you'd pick 150k base + 0 RSU over 140k + 150k RSUs?
How did you make it to Facebook? Such a dumb question.
I value private RSUs the same as cash. A little discount for the illiquidity/variance offset by the RSUs all being invested at time 0, even though it vests later. How to value RSU is not independent of your financial situation and how big the rsu grant is. The closer to risk neutral you are / the smaller the rsu grant, the closer to cash it should be valued at.
Risk neutral just means only concerned about expected return. You still need to discount for expected time to that payout (in cash).
Vishnu incorrect. The value of the rsu is the present value of future cash flows. There is no discounting on your side needed to value RSU.
0 until liquid. Luckily if it becomes liquid.
💋
Very strange