Explain Disney LTI
Can anyone please explain to me what LTI is Disney Comp structure? 1. Assuming LTI is a stock, what's the vesting period for LTI? 2. When the recruiter says LTI is say 60% of base, what does that mean? Does it mean that at the end of the year/vesting period, stocks worth 60% of the base will be credited to you? 3. Is LTI a guaranteed amount or is it a target depending upon individual/company performance? 4. Typically what times of the year is the LTI payout time? In short, can I assume it as an equity grant from any other tech company or is there a catch in the Disneys LTI component? Thanks in advance. #disney #disneycompensation #disneyhiring #disneyinterview #disneyoffer #disneyonsite #disneysalary #disneystreamingservices
There are two types of grants. (Stock/RSU) 1. A sign on grant that vests over 3 years (every 6 months). 2. Refreshers (60% of base) for P5/principal level. I’ve heard that these are typically granted in December and vest over 3 years. The percentage is a target (that I hear is typically granted - haven’t heard of people getting screwed).
Comp looks like this: Year 1: Salary + Bonus + Sign On + Sign On Stock (likely only 1 vest) Year 2: Salary + Bonus + Sign On Stock + 1 refresher grant Year 3: Salary + Bonus + Sign in Stock + 2 refresher grants Year 4+: Salary + Bonus + 3 refresher grants
Thanks a lot, dork73 for explaining this. Throughout blind no post explains LTI, It started making a little sense now. Say if my base is 100K, 20% bonus, no sign on and LTI is 60%. Does the below sound correct? Please confirm. Year1: 100(Base) + 20(Bonus) = 120 Year2: 100(Base) + 20(Bonus) + 20(1st part of 1st LTI) = 140 Year3: 100(Base) + 20(Bonus) + 20(2nd part of 1st LTI) + 20(1st part of 2nd LTI) = 160 Year4: 100(Base) + 20(Bonus) + 20(3rd part of 1st LTI) + 20(2nd part of 2nd LTI) + 20(1st part of 3rd LTI) = 180 I am trying to confirm that LTI tends to add up and you start making real 60% per year only from the 4th year onwards! I wish they had not made it so complex and had given more equity in the initial years.
@7up! It’s a little bit more complicated than that (but you get more money!). You get a sign on stock grant for the first three years. The amount is negotiable, and it should roughly be 3 * 60% = 180k in your example. You’d get an extra 30-60k in year one, 60k in year 2, 60k in year 3 and 0-30k in year 4. (The vesting schedule can be slightly different depending on when you start). This means that TOTAL stock amounts would be roughly 60k year 1, 80k year 2, 100k year 3, 60k year 4+ in the example.
tl dr; long term TC is base + bonus + LTI = 100 + 20 + 60 = 180 short term TC is higher because of signing bonus and refresher stacking Year 3 is the best with 100 + 20 + 60 + 40 = 220 The timing of the stock stuff might vary a bit depending on when you join - check with your recruiter
Thanks a lot dork73. I have better understanding now and can ask relevant questions to recruiter. I still have not had numbers conversation with recruiter. I will post once I get it. Thanks again. There is no other post on blind which explains LTI in this detail. Have a good one !
Crazy sign on grants. Is that a real offer? Year 1 = 240 + 200 + 200 = 640 Year 2 = 240 + 200 + 40 = 480 Year 3 = 240 + 200 + 80 = 520 Year 4+ = 240 + 120 = 360
Wow.. that sounds like an outlier. Congrats on a great offer. Is it for Disney streaming? What is the location and what level this offer is for ?
So an Amazon guy posts a huge TC and then deletes his comment and runs away. Not sure what he gained...
Let’s be charitable. Maybe he was trying to figure out how LTI works with a hypothetical offer.
Been a long time since I received my initial grant. But currently for mid level SWE it’s a 25% of base grant in RSUs over 3 years. You can get one every year and they obviously stack. Bonuses each year range on how well the company does, but I saw an average of 6-9% of base every year. Senior+ those bonuses get larger but the RSU LTI percentage stays the same believe it or not (25%)
Are there any raises at Disney? What do you do when your sign on LTI and Bonus run out, can you negotiate another bonus?
Refreshers annually at fixed rate. Annual bonus too.
I know that part. I’m talking about the sign on cash bonus and LTI
What LTI is a typical director for DSS? 50% or 60%?
It would be some fixed percentage. Senior Manager (M3) is 60% (in tech), so director would have to be higher.
If I’m sticking around until my LTI vests, should I be exploring my options at year three or year four? Obviously it can be extended beyond this but we’ve established in other threads it can be a toxic culture
Please communicate to the recruiter that LTI needs to better explained in offer letter.