Assume one has Uber rsu worth $1 million. You're vesting $250k every year. Does Uber sell to cover taxes? Do they come out from my pocket?
Uber pays for taxes
Does it mean I get ~75% of what I vest in hand?
Yes.
Is Uber stock worth anything since they aren't public?
You arent vesting $250k a year lol, you are earning a small piece of equity in the company with has a value of $0. The irs does not tax $0. If the equity ever becomes worth something you will pay taxes on the cash value when sold and pay taxes on future vesting at market valuation.
Wrong answer on both how rsu and tax work. Please refer to the answer below
The answer below says the same thing ;)
Read your offer carefully. there is a clause that says your RSUs vest only at the liquidation event (i.e. IPO, acquisition). so even though you complete the time with the company and RSUs come in your account, you don't pay any taxes to IRS as they are not vested until IPO. but the downside is that your more than 1 year worth of RSUs will vest in a single year if Uber does not IPO in 1 year of your joining date. so your income for that year is going to be very high and hence taxes. Also, you can keep your RSUs based on the time spent with the company but they will not vest until a liquidation event.
This should be the accepted answer
Thanks 1485. I was looking for the kind of clarification you provided.
Same thing at DocuSign. Not fully vested and therefore not taxable until liquidation event.
I'm pretty sure there are no RSUs at this point. It's all options.
Wrong. They stopped options a while ago and are only giving RSU's now.