Why do people join Stripe with their new comp structure?

Sep 28, 2021 15 Comments

Just cleared the interview and I got almost 650k TC annually. Their equity is evaluated annually and it is not like you get it converted to number of share at starting date for the next 4 years (like FB,G, Msft or others).

So even if their stock goes to moon after ipo, there is not much of upside..

With that being said, does it make any financial sense to join them? Of course they are safe to stock decrease as well but I guess people join pre-ipo for stock appreciation after IPO.

Am I missing something here?

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TOP 15 Comments
  • I mean, there's still 650,000 reasons
    Sep 28, 2021 0
  • Google
    bhujvgh

    Go to company page Google

    bhujvgh
    What's your current tc and level in fb?
    Sep 28, 2021 3
  • VMware
    vFear

    Go to company page VMware

    vFear
    You have a 700k TC because of stock price increase. Imagine someone non faang or someone whose 4yr vesting is done and is now recently granted new rsu at current stock prices of faang. Their TC Is not 700k. Those grants are roughly going to be average sizes. Those average grants are not going to be as big as stripes average rsu grant per year. Stripes average grant per year will be 50 to 70k more than that offered by faang average per year grant. Unless those grants per year in faang match stripes grant I see that stripe can out do faang over next four years.
    Sep 28, 2021 0
  • citizenM
    TC:1000M

    citizenM

    TC:1000M
    FB is a chill and grill job. Stripe is a fight and gripe job. The killer culture discount is not reflected in the Stripe TC, so weighing post IPO share appreciation is key.
    Oct 5, 2021 1
  • Mozilla
    rmec82

    Go to company page Mozilla

    rmec82
    It does impede growth during the vest but once you have the stock the appreciation starts like any other. At this point, it shouldn’t make much difference given how close IPO supposedly is. Would be a much bigger deal in early rounds
    Sep 28, 2021 1
    • Mozilla
      rmec82

      Go to company page Mozilla

      rmec82
      Should also add, post ipo a stock frequently drops in price, so that would mean you’d get more shares if you get a grant during that time (given it’s fixed $ not fixed units). Could work out nice longer term to see that appreciate back up as the IPO sell off ends
      Sep 28, 2021