That's an option at Spotify. Instead of RSUs you can select to receive 90% of your RSU allocation amount as cash. What would you prefer? Actually you can have a percentage split of the two options. example: instead of RSUs worth 100k $ vesting over 4 years you'd get 90k $ vesting over 4 years
RSU if you believe in the company to do at least moderately well. You get 100k vesting over 4 years so even if normal market growth your last 25 becomes 25*1.08*1.08*1.08*1.08=34k vs just getting 25 (even if you were given same cash). If they give less cash then it makes even more sense to pick RSUs unless you think company is going down in which case doesn't matter which anyway since you will probably get out soon.
Take cash and invest as per your portfolio requirements. Unless company is doing really well when RSUs make more sense
I thought so, yeah. probably just reinvest immediately.
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Learn it from Docu, get the cash 😭
Always cash. You can invest the cash in same company but at least that’ll be your choice. Not a mandate.
it’s effectively the same thing. when the RSU vests you should always sell anyway. it’s then equivalent to cash, not a mandate.
Not the same because the number of stock is decided during start date of the employee. If stock tumbles lower, OP will get less on the vest date. But if they picked cash option, they’d get the promised amount which would not have tumbled. Cash is guaranteed no loss. RSU may result in loss.
cash cash cash. the fact that they only give you 90 tells you what they think the RSUs are worth. if i were trying to incentivize RSU i’d offer say $120 and let the valuation history speak for itself. actually looking at the stock the $90 is far better …
If your company is public - cash. Otherwise, keep it in RSUs in hopes of cashing out big during an IPO
It depends on if you are getting fixed number of stocks as per current valuation for the next few years. In this case a stock is a better bet in the long run, assuming stock price growth. Or if you are getting fixed value worth of stock for then next few years at the valuation at that time. In this case, I'd take the cash and invest in a personalised portfolio.
Take cash and invest in index fund. Low risk
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Depends upon your risk appetite and company stage. For an early stage company I would take equity of I believe in the buisness and team. For a listed company cash is better. Take the cash and invest it your self.
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