How are people calculating TC here?
Dec 11, 2021
14 Comments
Example:
100k base + 50k bonus + each year 100k RSUs that vest over 4 years.
TC in first year?
Example:
100k base + 50k bonus + each year 100k RSUs that vest over 4 years.
TC in first year?
comments
If you mean to say that the company grants you 100k tranche of RSU every year, and that each tranche vests in 4 years after the the grant then that 100k isn't the TC for the year it is granted. It becomes TC when it vests.
The simple rule is for any stock grants, to count it in the TC of a given year, it should be vesting that year.
If you get a sign on bonus or refreshers I amortize those over 4 years as well.
For example: 200k base, 700k RSU, 100k sign on bonus, 150k refreshers, and a 15% bonus to base/refreshers would equal:
200 * 1.15 +
175 +
25
= 430
Year 1 refreshers vesting = 1/4 of amount, year 2 = 2/4, year 3 = 3/4, year 4 = 4/4. Total over 4 years = 10/4 = 2.5. Amortized over 4 years = 0.625:
150 * 1.15 * 0.625 = 107.8
TC = 537.8k