Stripe RSU

Facebook / Eng
BXYX47

Go to company page Facebook Eng

PRE
Amazon, Facebook
BXYX47
Feb 27, 2021 9 Comments

is stripe's rsu policy (value rather than # of shares) only applicable to refreshers?

yoe: <1.5 TC: ~220 #tech #stripe

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TOP 9 Comments
  • Uber
    Clpn22

    Go to company page Uber

    Clpn22
    Haven’t seen any explanation of refreshers in the many discussion of it here. Nobody with an offer from Stripe or Stripe employees have mentioned it
    Feb 27, 2021 2
    • Let’s say you get $500k in your initial grant. At many companies, they’ll take the last stock price or last valuation and divide $500k by the price and that is the number of shares you should get. If the stock price is $100, you get 5k shares.

      For Stripe, they take that grant and then give you a quarter of the target value at its current price each year. If the stock price is $100, you get 1250 shares the first year. If the stock goes up to $150 after that first year, you get 833 shares for your second year. If it goes up to $200 the next year, you get 625. On the lsat year, if the price goes up to $250, 500 shares

      Looking at the math, if you sell every year and assuming same stock prices, the math works out like this:

      - FB & Google: 1,250 x 150 + 1,250 x 200 + 1,250 x 250 + 1,250 x 300 = 1,125,000
      - Stripe: 1,250 x 150 + 833 x 200 + 625 x 250 + 500 x 300 = 1,125,000 = 660,350

      This is a drastic example since stock growth is the biggest variable (ie. reasonable estimates could be Stripe to 2-3x where FB/G 40-60% - these are complete guesses). TL;DR: you lose a lot of upside growth with Stripe

      The counterpoint to all of this is that if the stock price bombs, you'll still hit your TC targets - whereas at FB/G you'll take a big hit
      Mar 22, 2021
    • Uber
      itgksn

      Go to company page Uber

      itgksn
      I understand the grants for new hires. My comment was about how nobody has explained what refreshers look like there
      Mar 22, 2021
  • No it applies to the initial grant too
    Feb 27, 2021 5