A lesson in finance for the rsu clowns

Albertsons rvUd7211
May 11, 2019 165 Comments

FNG has only had good stock for past 1-2y. It has crashed in 99, 09, 2015... Every ten years about, and stays low for the majority of the time.

Say you got an Amazon job in 2014 when the stock was 380. By the time it vested you've lost a third of it's value. And if your base was 150 with 100k stock, it's a 270k TC. Less, since the present value of the future comp declines 10% a year because you could invest yourself.

Compared to, say, a 250k C2C contract at Albertsons or whatever.

If the stock has a volatility of 100% and a 30% chance of crashing any given year, there's something called a Sharpe Ratio that comes into play. That's your risk adjusted return. Doing your own investments at a 100% return (just hold a hedged Amazon position) and 10% risk of loss is 3x better Sharpe than your hypothetical rsus.

So the stock TC is pretty worthless, if you do the math correctly it's about 1/3 of it's purported value due to the company investing for you like you're a babby. Plus add 15% for C2C. The 500k goog salaries with 200 base are comparable to a 120 hr contract, which is a really a 100hr contract plus negotiation.

Everyone pays the same faang just plays math games.

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TOP 165 Comments
  • Microsoft gfba68
    Sure, TC drops in a crash but you are wildly, wildly exaggerating. Most employees of those companies have done extremely well. 100% volatility with a 30% chance of crashing any given year isn't even within the realm of reasonable
    May 11, 2019 99
    • Albertsons rvUd7211
      OP
      Which book? Mein Kampf?
      May 19, 2019
    • Salesforce Go-diva
      Wow this was a wild ride
      Jun 20, 2019
  • Yes poor folks at FB/G struggling so much. Hope they get free food at least
    May 11, 2019 5
    • Airbnb UxqX57
      No, the cliff period is one year. Then, the stocks get vested on monthly basis.
      May 12, 2019
    • Albertsons rvUd7211
      OP
      No, you get a 4 year grant and it vests monthly. So if you joined fb in 2014 and sat on your ass your 200k grant would be 1m.
      May 12, 2019
  • Oracle bT43cv
    This guy has serious insecurity problem.
    May 11, 2019 1
    • Airbnb UxqX57
      He got rejected interviewing for a FANG, and now posts a bunch of posts to make himself feel better.
      May 12, 2019
  • New / Eng na206
    This guy is seriously a pretentious dickhead. Like really who cares. My take home is 5500 a month. My gf 4000 a month. We have a 5 bedroom house in the suburbs of Renton. I pay 850 a month in child support to a previous relationship and we live great.

    You sound really bitter like you’ve been rejected from FANG 100% of the time.

    I’m so glad you work at Albertsons and not somewhere else because I know I have zero chance working with you.

    If you are in your thirties acting like the child you are over money you have some serious growing up to do.

    Learn to be happy with what you have. Glass door reports you guys make between 84-101k a year.

    Learn to be happy with what you got and stop dick measuring on TC and stocks.
    May 11, 2019 18
    • New / Eng na206
      @square. I agree. Vegas also has no sales tax and the real estate there is fucking amazing.
      May 12, 2019
    • Albertsons rvUd7211
      OP
      It's amazing because there are no jobs. 1/3 people are resort workers, the only tech co is Zappos and some obscure ones.
      May 12, 2019
  • Google ovBk62
    This is the same Albertsons guy from that other random post I think
    May 11, 2019 1
    • Oracle bT43cv
      You don’t have to think. It’s obvious. That guy was a loser too.
      May 11, 2019
  • Microsoft MSFTBRO
    Someone sounds jelly.

    My bonuses pay bonuses every qtr.

    Many people dont sell their rsu as soon as it vests.
    May 11, 2019 3
    • Microsoft MSFTBRO
      Yea those idiots who held Amazon RSU because they dont know finances!

      I pity them.
      May 11, 2019
    • Albertsons rvUd7211
      OP
      It's because the company did that for them.
      May 11, 2019
  • Facebook bigdickE3
    lmao this guy again
    May 11, 2019 0
  • Square / Eng SQ
    Tldr: I'm jealous that I'm not at FNG so let me write something to make me feel better.
    May 11, 2019 0
  • Honeywell that1guy
    OP is jealous because he’s poor AND can’t get into FAANG.
    May 11, 2019 0
  • Salesforce lololl
    You math is way off. Whoever got amzn at 380 is a millionaire now
    May 11, 2019 2
    • Albertsons rvUd7211
      OP
      Because they held the stock, it is not TC.
      May 11, 2019
    • Salesforce lololl
      Even if sold its still way off
      May 11, 2019

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