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Tesla ruined whole auto industry
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Ideal indian parents
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Pray for folks at Tesla
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Is meta really worth the wait?
We must rise up against the 0.1% trying to get FAANG to only pay workers with cash. Stock based comp RSUs and options are the only things that work. Trickle down economics does not get the 60k salary employee money needed to fund a family. Stockbased comp gets us closer to a more equal society with less wealth gap. Don't let the hedge funders board vote away stock based comp! Edit: my assumption is if they get rid of RSU, a 400k package today with rsu will look more like 300k all cash package. This is because they can't use accounting shenanigans to justify paying 400k with RSU vesting schedules. So the question really is. Take 300k cash now, or 400k split in cash/rsu with vesting schedules?
depends on the year/market outlook. it’s not completely black and white
Yltrue, but the enormous packages is because Faang coughed up on paper balance sheet savings to workers. They overpaid workers with stock because it artificially increase cash flow from operations and boosts the stocks value due to a good PRICE/Free Cash Flow ratio.
If you get paid in cash you can buy any stock you want. Isn't that better?
on a multi-year vesting schedule you’re essentially being fronted that cash in advance to buy company stocks. all cash you don’t have the ability to buy an asset until that cash is “vested”. definitely not necessarily better
Yeah I don't actually love having an outsize portion of my comp (unvested RSUs) tied to the perf. of a single company. It wouldn't matter as much if I had 1-2m in other investments, but since I don't... I sell whenever stock vests and reallocate.
Slow down, comrade! Take it easy with the class warfare. What's to prevent you from buying stock with the cash? I know they don't teach real economics at the Party school but this is just common sense.
How about lots of cash and an employee stock purchase program. We don’t get to claim losses from our RSUs dropping from the grant date to the vesting date, which sucks
I don't like having too much of my net worth heavily weighted towards a single stock. Cash means I can invest how I like, and no vesting period.
The advantage of RSUs is similar to investing 4 years of revenues upfront without down payments. 200k / year + 800k RSU > 400k / year. Because if the stock tank, you can switch ship right away, and try your luck again. It’s similar to having a 4x leverage with limited risk. Your 4th year of RSU has been invested for 3 years. When getting cash, it wasn’t.
Cash is far better, does not vary like equity comp. Equity comp is only good at high-risk employers like startups because there is potentially an extremely high upside. At established companies with less upside potential, it's just a carrot on a stick. This of course assumes the cash TC is nearly equal to the cash+equity TC and raises+bonuses are good
You got it wrong. RSUs are similar to using leverage without down payments and limited risk. Your 4th year of RSU has been invested for 3 years already. While the cash wasn’t. $X in RSU * 1.08^ nb years At equal amount, RSUs have more value than cash.
Where are you getting 1.08? Historical total market average over past ~100 years is probably close to 7% at best. Taking a large amount of cash for comp and immediately investing the same amount that your year's equity comp would be into the vehicle of your choice would be much better, doesn't force you to put all your eggs in one basket (company stock. You already are exposed to that specific risk enough by being employed there)
It won’t go away. Competition for tech talent still exists and this is a huge differentiator.
Cash > RSU for employees because currency is better than restricted currency. RSU > cash for employers because they can use it to delay payment and create golden hand cuffs as well as not awarding it to cause attrition by flipping comp to go from competitive to not without having to deal with additional costs of PiP managing someone out.
No, you’re overlooking that RSUs are a free investment on margin. What you are vesting years later in RSU have been increasing in value over the years. While hard cash didn’t.
Hard cash can be invested in that same company or other companies and is thereby always better than RSU 1:1 for employees, I overlooked nothing. Employees who think RSU are better than cash 1:1 are drinking the cool aid the employers want them to because it gives them benefits of paying for things under a cash equivalent value because humans value it more than it is. Best corporate trick ever.
Tc is tc is tc. Stock vs cash doesn’t matter.
It does it does. META undervalued their stock packages because it doesn't affect free cash flow from operations.