Refresher Policy
Could someone explain what a refresher policy is in terms of stocks? Also, if someone knows could you explain what happens if a person takes an offer of 200k in stocks vested across 4 yrs at LinkedIn, then would they receive any further stock if they decided to stay in the company for lets say 10 years?
It's a way for companies to automatically reduce your pay if you aren't working out, but without actually having to fire you. No refresher unless you perform.
So if someone starts off with a 200k stock vesting over 4 years, will the person be getting any stocks down the line besides the first 4 yrs at 50k each ?
At Amazon you will have stock to keep you at your "target comp", and that target will go up or down based on your performance. Your target is initially your first year TC calculated at the time your offer was made (in your example base+50k), but it changes every performance review after that. The only time you won't get anything is if you're on a PIP and about to get fired.
It differs between companies. In places like FB, you get a refresher every year, regardless of performance rating (a higher performance rating can significantly boost the size of the refresher). So in your example, a person with an initial grant of 200k will vest 50k a year. Then, at the beginning if the second year they'll get a new grant of, for example, 50k over 4 years. That would make the total RSU comp in the second year 62.5k and the same thing will happen every year until, in year 4, it will reach in this hypothetical to 87.5k. At year 5, it will drop to 50k and stay there. This is an oversimplification - stock can appreciate over that period making earlier grants more valuable, high performance ratings can double (or more) the annual grant value, promotions can completely change the annual refresher baseline, etc.
Refresher policy at LinkedIn is pay for performance. There is no guarantee that you'll get more stocks. But if you have been performing well, Linkedin will take care of you
So if someone starts off with a 200k stock vesting over 4 years, will the person be getting any stocks down the line besides the first 4 yrs at 50k each ?
They will most likely get it if you are performing well