What cash value would you put on $100K Cruise RSU?

Baidu / Eng hirop
Jun 9, 2018 10 Comments

Edit: In case some folks aren't aware, Cruise is essentially back to being a private company now after recent Softbank investment. For new hire offers, they are giving out Cruise equity instead of GM equity. Or this is what was explained to me anyway.

Some of my thoughts and assumptions:
• I'll owe tax on vested RSUs (shares) even though I can't sell the shares, so I'll pay ~$45K out of pocket when they vest. Need to confirm this with Cruise.
• I won't be able to sell the shares until Cruise goes public. However, I'll ask if they'll allow me to participate in secondary markets (i.e. sell my private shares).
• Cruise won't go public until the ride service is widely deployed; that's probably 5+ years away.
• Cruise may stay private indefinitely even if it does establish the ride service (see: Uber).
• My share value may drop due to dilution or whatever.
• I don't know the terms if I leave the company before it goes public. Perhaps I lose the shares (the vested RSUs) even though I've already paid tax on them? I'll ask.

I'm super-positive about the company and underlying tech, but given all this... I'm inclined to put the cash value of the RSU at zero or maybe even negative!

TC 375, 15 YoE

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TOP 10 Comments
  • Is this true even for those who have already joined?
    Jun 9, 2018 0
  • Airbnb Gregg
    They will only be worth something if they beat out waymo and Uber or get acquired by Lyft or another automaker. I would value them at 10% if you are comparing with a public company
    Jun 9, 2018 2
    • They've already been acquired by GM... so you're saying they're worth something?
      Jun 11, 2018
    • Airbnb Gregg
      Per the OP is sounds like they are still independent
      Jun 11, 2018
  • New AMex31
    With RSUs I think they typically withhold some units to take care of the tax, same as your salary.
    Jun 9, 2018 1
    • Twilio yuno
      Policy depends on company I believe.
      Jun 9, 2018
  • Yahoo SKKS58
    In the same situation. plz check DM.
    Jun 11, 2018 0
  • Credit Karma ugxwlnvsvj
    You shouldn’t owe taxes on vested RSUs until there is a liquidity event, most companies defer settling of RSUs if they aren’t public.
    Jun 9, 2018 0
  • Lazard fin/tech
    Do you mean PSUs? Because RSUs function as they normally do.
    Jun 9, 2018 0
  • Airbnb jim.hodlen
    are you working on sdc at baidu too?
    Jun 9, 2018 0

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