RSU based Salary is a Hoax

Nov 24, 2020 585 Comments

Relatively new to Bay Area.
Never got a TC before where ~40% tied to RSU.
( worked in midwest non-tech)
It looks like a hoax/gamble to me.
For example since I joined : MSFT did not show massive growth. (22-25% growth from my grant value)
Same for other FAANG stocks ...
Plus the โ€˜Netโ€™ cash you get after tax and capital gain ( which Biden might increase!) is ๐Ÿฅœ.

If the market tanks we would have nothing...
So when Silicon Valley workers/recruiters quote high TC, is it not pure BS ?
Take the RSU part out and you can make same base and bonus anywhere in USA.

Whatโ€™s your opinion?

Also, Do you hold on to vested stocks or sell them immediately?

TC 310k, YOE : 8

Meta Apple Microsoft
585

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 TOP 585 Comments
  • ๐Ÿ’ฐis๐Ÿ’ฐ I donโ€™t care what form itโ€™s in, base bonus rsus? Why does it matter? As long as I can get it into my bank account at the end of the day Iโ€™m happy
    Nov 24, 2020 16
  • Welcome to the valley style capitalism. It is obviously a percentage game and most people make money in the long term. Just think of this as another investment like stock market real estate etc
    Nov 24, 2020 11
    • Google
      โ€‡

      Go to company page Google

      โ€‡
      People in this thread making conclusions based on a sample size of 2 lol
      Nov 25, 2020
    • Fluent:speak facts instead of cliches like โ€œriled it up with holesโ€. One could easily say that Obama โ€œriled up the economy with holesโ€ through his massive QE and zero % interest rates, well through the 2010s. If you know the first thing about macroeconomics, you know that keeping interest rates artificially low is a recipe for long-term disaster and means that monetary policy will be less useful next recession.

      Btw, I 100% agree that Trump has been weak on many economic issues(tariffs, also keeping interest rates low, etc.).

      But you need to be able to call out both sides, like I am. Obama created large deficits and kept interest rates artificially low to get a great economy and market. Trump did the same and possibly worse. In both cases, their actions are going to lead to horrific consequences down the road, like hyperinflation, massive bubble formation, etc.
      Nov 26, 2020
  • Always consider and evaluate TC as the granted value, not the appreciated value (if it appreciates, it's icing). Sell when you vest, else you end up in the long term with a lopsided portfolio. I totally didn't follow this advice, and although it has worked out for me (most of my wealth is in well appreciated Google and FB stock), ymmv and I'd have been safer (albeit maybe poorer) with more diversity in my investments.
    Nov 24, 2020 13
  • Google
    PTvy81

    Go to company page Google

    PTvy81
    This is a hilarious post.

    OP - are you not familiar with the concept of selling your stock as soon as they vest? You can use that money any way you please.
    Nov 25, 2020 9
  • Unclear why you say it's a hoax. If it doesn't 10ร— its worthless?
    Nov 24, 2020 7
    • Splunk
      NwFr42

      Go to company page Splunk

      NwFr42
      People aren't judging their TC based on the 20k grant though, they base it on the 1/3 number or ~7k.

      Noone requires you to sell you shares right at vest, so if there is a dip, you just hold a bit longer. Unless it's a sinking ship, then you sell and leave the company.

      But it doesn't "disappear into smoke" you are given shares that have value and can increase/descrease in value even after vesting.

      And the measured lumps are basically the same thing as getting a regular bonus. It's literally no different. Again, I could give you ~7k (using your example) bonus each year, or I could give you ~7k$ stocks that could appreciate in value per year. I'll take the stocks, thanks.
      Dec 4, 2020
    • Splunk
      NwFr42

      Go to company page Splunk

      NwFr42
      Fun fact, our company just had a bad ER and stocks dropped 20+%, and our vest date for the next set of RSUs are about to hit. Did I just "lose" 20%? No. I'll get the same number of shares that I'll hold until it goes back up.
      Dec 4, 2020