At Airbnb, once an RSU vests, it’s yours to keep until the company goes public in which case you’re able to sell it. Airbnb does not take back my vested RSUs but I do forfeit the unvested RSUs when I leave. I’ve explained this concept to several FANG engineers and people from other public companies who seem confused and surprised that vested RSUs remain ours even after leaving a pre-IPO company. Is this not the case with other companies? Do other private companies take back your vested RSUs after you leave?
Hmm I think your experience is the normal one, no?
Absolutely. I thought it was common knowledge until I spoke to these people and then ran into this response from a blind post which made me wonder if pre IPO companies did not have this policy as standard:
@op with whom you have been talking to ? Those must be smoking weeds...
Once an RSU vests, it’s yours. All FANGs operate this way. Maybe your friends confused vest with grant?
Do you get to keep the cash money they pay you too when you leave?
Most FANG engineers have never worked at a pre IPO company, that’s why
Doesn’t it depend whether your RSUs are single trigger (ie time employed) or double trigger (ie time employed AND liquidity event)?
Perhaps they confused them with ISOs, which often do require you to either exercise or lose them after you leave the company (typically within 90 days), even after they’ve vested.
Ahhh. You’re likely correct. Thanks for calling this out.
All private companies who offer RSUs also have an exercise window (I don't remember the exact term). It means that you can keep your RSUs for x number of years after you leave the company. If there's no exit for the company within that time period, you lose your RSUs. Maybe Airbnb offers a long enough such time period.
You’re talking about ISOs, not RSUs. Only ISOs need to be exercised in order to convert the options into stock. RSUs are already equivalent to stock, and do not need to be exercised.
No. I'm talking about RSUs and I know how they differ from ISOs. I used the wrong term (exercise window). I have had some offers from private companies which offered RSUs and there was a term in contract that I can keep my vested RSUs after my departure from the company for x years or until the liquidity event whichever happens first.
This is the case at literally every other company.
Got it. Ty