I see many people switching FANG type companies and thinking they are scoring bigtime with stock bonuses to switch. Are any of you taking into account the frothy evaluations and possible tech bubble in the market? That stock in FB, AMZN, AAPL, MSFT, TWTR, TSLA, NFLX, etc. may not be worth as much when you actually vest.
Historically Amzn has been 2-5x worth when it actually vest
Do see AMZN and AAPL hitting 2T market cap? I don’t see how you even get to 2X
But isn’t RSU just total cash, meaning it is not subjected to stock performance?
There is a share price associated with your stock grant, you could get a grant at 100 dollars and sell at 200. Or the stock could be 50 and you are underwater.
Fwiw, if the stock price dives to a point where you miss your total comp target, Amazon does have the precedent to grant you more RSU to “make you whole”
This is only a risk for amzn, everyone else pays a large base and bonus. Netflix is almost all cash.
Compare stock to stock, bonus to bonus, and base to base. If you have cases where base goes down but stock goes up then yeah this makes sense to think about. But I’d guess that most people see an increase in all three.
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The grant amount is still 2-5x what you would have got if you stayed. So, you will still get a net increase in TC.