Why do people view Stripe’s new RSU policy as a negative? Risk is managed and you’ll still win at the end of the day if the value goes up. How is Stripe’s policy different from other companies? Yoe 3 305 tc
I know it limits upside but I kinda liked it because I don’t have to worry about 4 year cliff.
I like the four year cliff. Gives me the motivation to check my market value.
The stripe annual grant goes for the entirety of your employment right? So you get RSUs and AVG every year from year 2?
If a company is doing badly and the stock price keeps going lower year after year, yes it’s great you get a new grant each year but the chances of being laid off also increase so it doesn’t really matter. You capture none of the upside and all the downside with these 1 year grants. Coinbase and Lyft also doing this.
Can you elaborate on “none of the upside”? I still get RSUs?
Yes but not 4 year grant ones. At other companies you get locked in at a price. On the 4th year you are cashing out on RSUs that we’re locked in at a price 4 years ago. There could be some serious appreciation there. With these 1 year grants the most appreciation locked in you could get is 1 year.
This new equity is more like cash. You have no long term investment in the company. Every year, you invest in the company based on the new valuation. Stripe can 10x in 4 years, but your equity will not 10x in that same 4 year period. A 4 year grant is better than the 12 month grant.
Do you have refreshers? If so what’s the $ value for Senior SWE and how many years to vest?
Thanks for the info mates.
Because people are bullish on Stripe, and you’ll miss the upside.