Shopify to allow staff to pick between cash and stock components

AMD
argama

Go to company page AMD

argama
Apr 8 12 Comments

I am reading on the news that Shopify to allow staff to pick between cash and stock components.
I wonder why would anyone choose RSU over cash.
Isn't better just take all cash, then buy some SHOP in your retirement account?
Am I missing something form the news?

TC 300

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TOP 12 Comments
  • PayPal
    aaaaabbbbb

    Go to company page PayPal

    aaaaabbbbb
    If stock goes up between grant date and vest, you do well. But cash is just cash.
    Apr 8 0
  • This comment was deleted by original commenter.

    • My bad ! It still makes an assumption that market growth will be the same as specific growth of a stock. Ie: Shopify. If I don't believe that is true, then I would prefer to either put that money in a different stock/etf rather than being locked on to a specific stock.
      Apr 8
    • Shopify
      byebug

      Go to company page Shopify

      byebug
      I think the calculation by Airbnb assumes you sell all your shares when vesting. If you hold, you will need to pay additional tax on capital gain when sell.
      Apr 9
  • AMD
    argama

    Go to company page AMD

    argama
    OP
    Anyone from Shopify fill us in the details?

    What if you quit before the RSU is vested.

    Do you forfeit your pay contributed to RSU or do you get the money back at cost, assuming the stock goes up?

    Any benefits other than tax implications? Maybe the company will do some matching of the RSU portion?
    Apr 8 2
  • Amazon
    itdobelike

    Go to company page Amazon

    itdobelike
    Read the title, thought the same, opened post to see that was your question too lol
    Apr 8 0
  • Airbnb
    I♥️Airbnb

    Go to company page Airbnb

    I♥️Airbnb
    Longer vest could have much higher upside. For eg: if you get $2M rsu granted on start date to vest over 4 years vs get $500k cash each year.
    Apr 8 0