Option#1: $400K RSU from FAANG with 20% yearly growth. After 4 years, you'll get $400K * (1.2) ^ 4 = $829.44K (Let aside the tax implications) Option#2: $400K RSU from Stripe with 40% yearly growth. After 4 years, you'll get $100K *1.4^4 + $100K * 1.4^3 + $100K * 1.4^2 + $100K& 1.4 = 994.56K The time-value of unvested RSU is very real, even with double speed growth, Stripe can only beat FAANG with a very thin margin. And also the marginal gain can only hold pre-IPO, after IPO, everyone can swap their FAANG RSU to Stripe, actually, post-IPO will make the fix-value grant a pure downside. (assuming FAANG can steadily go up) #tech #stripe #rsu Looks the company doesn't want its employees to grow with it.
I think Stripe is so confident in the value of their equity, they aren’t willing to offer enough to make a competitive TC for 4 years with standard terms. This scheme is a way around that. It eliminates most of the financial upside to joining such a company, but if a candidate is just comparing offers by TC, they may not get it and join anyway. Or to put it another way: it’s too late to join the club. The drawbridge has been raised. You might as well be a contractor.
OT, but it’s funny how blind tagged simple the company in your post😂
This doesn't include refreshers and your 20%/40% numbers are totally arbitrary. Facebook could be flat for a decade like Microsoft was. One year of a 2x or 3x will easily beat 4 years of ho-hum 20% increases. Nobody knows what'll happen Most people will maximize earnings by by joining a highly profitable public company like Facebook or Amazon. Join an earlier stage company because you want to build something and prefer working somewhere everything isn't yet figured out
I think you missed the memo on stripe’s policy here. The value of your grant resets each year, so if it goes 2x or 3x in some year, you don’t benefit from that appreciation in any future years.
How is this price determined when it hasn’t even gone public ?
OP smoked enough assuming every year 20% FAANG growth
Well, you have to start from some numbers. but anyway, I think my point is clear. The hilarious part of this is, if I were to accept an offer like this, and Stripe valuation jumps 3X in the first year, I really don’t know I should be happy or sad about it. Given valuation would normally be flat for a while after big jump.
You’d be happy? You could leave after year 1.
Netflix offer is full cash, yet still very competitive. We are offering like 440k dollar amount for senior level SDE. Aside from that you get refresher. Staff+ probably earns another 35%-50% more. So I think it’s still very competitive (benchmarking Netflix), just not as before.
Does this mean that stripe post-ipo will be likely keeping this RSU policy? Sounds like someone from Amazon got in there and convinced them to clawback gains
When does the conversion from dollar to rsu happen? At the beginning of the year or at the end of the year? Assuming I join today, will the 1st year grant quantity be decided now or a year from now?
I like this arbitrary 40% gain for stripe lol
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so it’s not leveraged any more?
I guess in the new scheme, if the stock tanks for some reason you’d get more shares
People join because they think it will go up, this either way remove the motivation to join.