A SoFi recruiter told me a couple days ago that sofi guarantees on each vest a minimum value of $4.5 per share. E.g. If you are vesting 1000 shares, that's a guarantee of $4,500 (1000 x $4.5). So if the stock falls to $3 then you'll get 1500 shares to get you back to the $4,500 value (1500 x $3). Is this true or am I misunderstanding something? Current TC: ~$420k
Old and new tc?
Sounds like they are very desperate. They’re gonna belly up soon
Why do you think it's desperate? They are trying to make it right for employees that got crushed by the stock market last year.
A company that is net negative and promising “2million” in insurance can somehow have the cash to fork up the RSU when every bank is about to bust. I don’t believe them for a second
No. You’re not understanding that right at all. Or the recruiter doesn’t understand it themselves. The GRANT price (not the vest price) will never be below $4.50
Oh thanks for clarifying. So in reality it's a negative not a positive for employees. It means if stock price falls below $4.5 at grant time, you won't be granted more shares. E.g. SoFi grants me $45k worth of RSUs. On grant day, if price is $4.5, then I get 10k shares (worth $45k). But if the price falls to $3 on grant day, then I'll still get 10k shares (worth $30k). Did I get it right?
Yes, exactly. It was a move to appease share holders worried about dilution through stock based compensation
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Yes. That is correct. But i never know that company gives such kind of vest
Thanks for confirming. What do you mean by the last sentence?
You mean there's no company doing it other than sofi?