I just got an offer from Robinhood, while I have no idea how to evaluate how much the RSU value today look like after the company IPO? Anyone can show me how to calculate? (Say if i have 100k amount of RSU today pre-IPO as an example, what this 100k look after IPO?)
It’s same, before IPO it’s paper money, post IPO it has value. Whatever is the value of the company at the time of grant, you will have same amount of shares after IPO as well. Basically, if 100K gets you 1000 shares at $100 a share per-IPO, then post-IPO you will still have 1000 shares multiple by whatever the value per share at that time.
Is that preipo price of $100 the FMV or the preferred price in this scenario?
For preIPO it doesn’t matter. Taxes always be based on the price on the day of IPO.
Which role?
Just sign the offer. You will make loads of money
It all depends on how the market responds to robinhood… and what the share price is when your first stocks vest.
Congrats! Check the price at which you’ll be granted stocks. If you join before IPO it should be valued at their most recent valuation. Or in some cases it will be stock price at some pre-determined date in the next quarter after you join. Check what their policy is and how IPO might affect it. Only their HR can answer this. How was the interview process at Robinhood? Was coding LC Medium? Anything out of the ordinary for system design?
Ask your recruiter what value the offer is on
What’s the level and breakdown?
It's L3, estimate 300k stock
300k/yr or 4 years ?
Stock price shouldn’t be a big deal because you will receive the currency value. If stock price is low or high, it should only impact the number of stocks you receive. Won’t change anything on the total currency value.
It does change the currency value. If the price is high and the number of units received will be low and if the overall stock price starts to tank later, it is a loss. Only if the stock price is assumed flat, then the total currency value won’t change
Like you understood, it only impacts the number of stocks received. You’d receive less or more depending on the volatility of the stock price. It won’t have any impact on the total value of RSU confirmed in the offer letter.
Is there a difference if i join pre-IPO or post-IPO?
What is mentioned in your offer letter? It might matters if rsu is in dollars instead
Pre ipo = you're grant will double After ipo = whatever happens to the stock over next few years
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You will be given RSU numbers in your offer. What is it?