Spotify RSU vesting
My friend told me at Spotify you don't get full value of your rsu, but only get the net profit of the granted rsu overtimes. For example you are granted 100 rsu at $1 dollar each stock, after it is fully vested, and the current price of the stock is at $1.50, you only get the profit of the stock change, which is 100 x $.50. And if the stock price remains the same, you get $0. Is that correct? Or my friend is wrong about how his company's rsu works, because I have never seen any company does this. #tech #offer #spotify #spotifycareers
Lyft is doing that with their new offers. While you don't get upside at vest, there is no downside when it drops.
I mean there is kind of downside when it drops. If I get 100 shares at 100 and it drops to 90. I still get $9,000 rather than 0. That’s kind of worse imo lol
Not true
not true for RSU, maybe he’s talking about options
He got those as new grad hire. It is standard for Spotify to give options instead of rsu?
what you said is definition of options, isnt it
your friend is wrong
Yeah so what you're describing is a stock option. Originally Spotify only gave options, but now they offer the choice between RSUs and options, or you can choose mix of both. With options, you get a lot more so if the stock price goes up a lot, you make more money than if you'd chosen RSUs. It allows you to decide what level of risk you want to take, safe RSUs or the riskier options which will have a higher reward if the stock price goes up a lot.
This is correct. I’m curious what people at other companies think about it. Putting the _value_ of these Options/RSUs aside, it seems like a pretty progressive equity package. You can even select 8 out-of-the-money options (1.5x? FMV maybe 1.25x - I forget) per RSU.
By this calculation, these should be stock options. I'll let spotify people comment though.