I got Instacart offer and wanted to check stock allocation policy. Is it the same as Stripe or Lyft? Every year fixed dollar amount and not units? TC 250K
Some ppl said they don't, but they have another red flag. If you leave before IPO, you will lose all your VESTED rsu. That is a huge risk if management are not willing to IPO, like stripe keeping private while they have 100b+ valuation. Or another black swan happens like covid, company decide to layoff before IPO. Nevertheless, their current valuation was on march, which is almost the peak time for a lot of recently public company.
Fuck this. It's too much greediness by C levels and investors.
Even though stripe didn’t IPO, they have had regular liquidity events for employees so it’s not that cut and dry if a company never IPOs.
Allocation policy is not similar to Lyft / Stripe. There is a 4 year grant that’s given. It is contingent on an IPO, though. If you join now, we will have had to not IPO by July 2022 for it to impact you. Not saying that we will definitely IPO by then but the chances of us IPOing by 2022 summer is higher than not.
Why would it impact me if they don’t IPO by July 2022?
Your first RSU vest will happen after 1 year. You will only be able to sell/keep them if Instacart IPOs. So if Instacart does not IPO before your first vesting date, your stocks will be vested but you will lose them if you quit etc
IMO candidates who have a choice should most definitely reject them because of their RSU policy.
Why is this a big deal? On the good side the pay is very high compared to other places and the upside potential is also high. There is a very high chance they will ipo soon. The only bad part is if you get fired or leave the company before iPo. It’s a small risk but there is no big reward without a risk
Every company allows you to keep the vested rsu for 7 years if the company does not ipo and you leave. I don't understand why would you lose all the rsu for instacart. Is this not negotiable?
Even if we not think of any evil Intentions of the company or investors, what could be the logical reasons for this kind of policy? Old employees already have stock vested. It’s only for poor new employees this policy applies. Why would any new employee move out before IPO? I think one reason could be they have no confidence in ipo right now and don’t want high attrition
Imagine 4 years later, it still doesn't ipo and you get 0 or very little refreshers at 4 year mark. If you leave, you lose all your RSU. If you stay, then a huge pay cut. This policy is evil.
Yes this policy is definitely evil. I’m only trying to understand what’s their rationale in the best case scenario
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Why do you think they won’t IPO? Rivian also has the same policy
For the uninitiated can you please elaborate? I know how amazon RSUs work since my friend is there. But for fb/stripe? If RSU is $200k over 4 years then you get stocks worth $50k every year? And at what price you are given those stocks? Current price or price when you got the offer?