Stock vs Cash compensation.
Is getting a large chunk of your TC in stocks (of a public company) really an issue? My company pays all cash, so we have a higher base salary but TC tends to be lower than companies that hand out stocks. Any real benefits of getting an all cash comp? I imagine you can always sell right after it vests and most companies you want to jump to give you the equivalent in their stocks.
Most lenders or mortgage brokers prefer to see cash income over stock compensation, even if it’s a public company.
I have not found this to be true. Sure, they ask for paycheck stubs but they also ask for W2 history since they recognize that through elective deductions a paycheck does not show a complete picture of income history.
Not sure how this disproves my statement. Of course a lender is going to look at your history to get a sense of how stable your income is and how likely it will continue in the future. Variable compensation is still going to be heavily discounted
Inflated. Especially now when we are seeing peak FAANG and on the heels of another dip. If you make it to 4 years which 80% of people don't id say reduce the cash value of the stock to 33% of the offer value at best.
😂🤣😂 feel free to short faang stocks if you are so confident
I will short Apple and Netflix. Fb stays flat over the next 4 years. Google grows marginally. Amazon has a strong run over the next 3 years. Financial dip affects everyone best to keep cash out of markets.
We're in a 10 year bull market so engineers who've gotten a big chunk of their compensation in equity have done very well. Some people remember 2008 and 2000, though. Those people tend to prefer cash.
If the stock does well, your annual RSUs are suddenly worth a lot more. Mine have 5x from my hire date. But it could go the other way too. Higher salary is probably better most of the time.
A stock market crash erases stock compensation if it vests at the bottom of a recession.
TC & YOE?
Benefits of all cash: immediately spendable, value not dependent upon market performance (e.g., crash/bull market) or company performance. RSUs typically have a vesting schedule I’d look beyond the RSU angle when comparing offers. Is there a significant difference in benefit value (e.g., 401k matching, medical plan costs or copays, etc.)
What could I expect in a stock/cash comp. Currently I make 320K cash.
Hmm looking at levels.fyi, let's say I made 415K with stock/base/bonus. It would be something like 230/170/15. Even if it were to vest at the bottom of the market, let's say down 50 percent. I'd walk away with 230+85+15 = 330. Lots of assumptions here but over all it appe appears worst case scenario is still not that bad. You still come out ahead, or very close. The 2008 crash maybe took 3 to 4 years to recover. So I'd happily take letd say 7bor 8 years of a much higher salary and 3 or 4 years of about the same as an all cash person. I'm sure I'm making lots of bad assumptions here. Happy to hear them.
It depends on the stock
Does it though? Can't you sell it immediately and get you cash?
Not if you have to wait for it to vest