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?

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TOP 14 Comments
  • Wtf does yearly 100k RSU vested over 4 year mean? It is either yearly or it vests over 4 years!!

    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.
    Dec 11, 2021 1
  • Google
    PundrSchai

    Go to company page Google

    PundrSchai
    "yearly 100k RSUs vested over 4 years" can be confusing. 100k is either vested over 4 years or 400k over 4 years.
    Dec 11, 2021 0
  • New
    chpocus

    New

    chpocus
    This should be a phone screen question.
    Dec 11, 2021 0
  • New / Eng
    yolosamba2

    New Eng

    PRE
    Facebook
    yolosamba2
    It’s what you get per 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
    Dec 11, 2021 0
  • TC would be $175k. $100k + $50k + $25k ($100k / 4). Not sure why anyone would calculate it as $250k; you’re not getting all the RSUs up front. With that logic, you might as well add your base + bonus for 4 years along with your RSUs. Quite surprised there’s ~20% who voted for $250k…
    Dec 11, 2021 2