Stripe’s New Offer policy on RSU

Google
gbone

Go to company page Google

gbone
Oct 17, 2020 233 Comments

Stripe made a big change in offer policy: rather than giving a four-year initial rsu grant, they give you a fixed dollar amount stock when every year ends at the value at the time.
This is very different from other companies. People joins such a company for its growth while Stripe intentionally caps it. Why? There could be two reasons I can think of: 1. saving cost — isn’t the company doing well financially? 2. Culture wise, the Leadership don’t think they need to compete with other top companies for top eng talent. Either way this is not a good sign —- Seems only Lyft and Walmart are doing the same thing...
What do you think?
#google #stripe #facebook #Airbnb #robinhood #databricks #uber

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TOP 233 Comments
  • I understand the up side for the last 12 months is capped. But doesn’t it also eliminate the downside risk? If valuation drops by 50%, one will get double shares right?
    Oct 17, 2020 18
  • Lyft
    btl8302

    Go to company page Lyft

    btl8302
    I was so much excited about my upcoming onsite with Stripe.. now, it's meh..very disappointed
    Oct 20, 2020 21
  • Lol and everyone on Blind was hyping up Stripe so much saying it's amazing, just like Uber was supposed to be before their failed IPO.

    Stripe is garbage.
    Oct 17, 2020 7
  • any link?if that’s true, just rule out one interview target for me. I heard the hiring bar dropped significantly since 2019 anyway due to aggressive hiring
    Oct 17, 2020 8
    • Amazon
      rustyocean

      Go to company page Amazon

      rustyocean
      That’s inevitable when you become big
      Oct 20, 2020
    • Okta
      100TBSSD

      Go to company page Okta

      PRE
      Glassdoor, Microsoft, United Airlines
      100TBSSD
      Interviewed with Stripe and spoke to a top performing individual in his role. He spoke like he was on a high horse and cut me off. This was only the 2nd round too. He was walking outside, barely paying attention, and ensured our meeting to end in 20 instead of allotted 30. Horrible experience.
      Oct 23, 2020
  • Uber
    uberific

    Go to company page Uber

    uberific
    It could help with the problem of determining most of someone's TC by a few hours of interviews when they are hired. It can also kill the 4 year cliff problem.

    Consider two candidates:
    #1 rocks the interview, gets $500k in stocks over 4 years. Turns out to be an ok performer.
    #2 doesn't do amazing in the interview but clears the bar, gets $300k in stocks over 4 years. Turns out to be a really strong performer.

    Under these 4 year vests, it is hard to get #2's TC up to #1's once both have been through a perf review. You can't really reduce #1's TC.

    In this other system you can do this because so long as the stock is going up, there's a cap on what somebody is getting from their initial grant. That opens up more of the stock pool for perf bonuses to current employees. Of course, companies could also just keep lower stock bonuses/refreshes, but then good people are more likely to leave.
    Oct 17, 2020 11