What am I going to make?

Microsoft PayMeBish
Dec 16, 2018 16 Comments

Uber IPO upcoming.
I have 5000 RSUs.
I believe the lockup period is 6 months.
Current FMV is $40.60 each (that value doesn’t account for the last round of investment from Toyota).
How much do you think I will make pre- and post-tax?

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TOP 16 Comments
  • Facebook / Eng EntBlind
    Assuming 15% value drop over the six months (and with Toyota’s dilution) and 30% eaten by taxes, 120k?
    Dec 16, 2018 8
    • Lyft / Eng Damn Son
      @MSFT_fte that only applies to ISO, not RSU. RSU get taxed immediately after vesting. Usually the employer/broker will sell a percentage of your shares to cover taxes before they transfer shares into your account.
      Dec 16, 2018
    • New / Eng MSFT_fte
      So is this a true statement for CA:

      Imagine you are granted X units of RSUs, where X/4 units is valued at P0 dollars. At the end of 1st year, thise X/4 units of initial grant are vested, and are worth P1 dollars. You lose %45 of X/4 units immidiately to taxes, and 0.55 * X/4 units of stock are transferred to your account. If you sell it immidiately you'll be taxed an additional 0.45 * (P1 - P0). If you hold it for 1 year, you'll be taxed 0.25 * (P2-P0), where P2 is the price of those X/4 unites of stock at the end of 2nd year.

      Please tell me this is correct, otherwise I'll get very confused!
      Dec 16, 2018
    • Oracle redviper
      If you sell immediately there is no further tax on your 55% of X/4 units.
      Dec 16, 2018
    • New / Eng MSFT_fte
      Really? I just did some math and with the assumption that stock growth at 1st year, stock growth at 2nd year, and any other investment's return (like s&p) are all equal, it's more profitable to hold, and sell at the end of 2nd year.
      Dec 16, 2018
    • Microsoft PayMeBish
      OP
      Interesting! 👍🏼 gives me stuff to research and think about it.
      I guess I had assumed I would sell immediately after the lockup.
      Dec 17, 2018
  • Twitter 🐒。
    What’s the point of trying to predict this? Just wait 6 months after the IPO, sell, and then tell us what you made.
    Dec 16, 2018 1
    • Microsoft PayMeBish
      OP
      I want to start fantasizing about my shopping spree! 🤑
      ... But really I want to plan for some investments.
      Dec 16, 2018
  • Airbnb jim.hodlen
    HODL
    Dec 16, 2018 0
  • Google blind rox
    Why do you have so less.. Joined recently? Are these just the vested stock numbers
    Dec 16, 2018 0
  • New / Eng MSFT_fte
    When did you join?
    Dec 16, 2018 0
  • Apple vAAA81
    Doesn’t sound like a lot. I thought Uber TC was better than this.
    Dec 16, 2018 0
  • Netflix bread
    💪🏼
    Dec 16, 2018 0