how do you evaluate RSU from private company?
Oct 29, 2016
22 Comments
How do you evaluate RSU from private company? I equate $1 to $.5 of Google stock, due to illiquidity and risk. But with this formula none of the private companies (e.g. Uber, Lyft) are able to match my Google package. And with this formula, I don't see any financial reason to leave Google. What kind of offer made you move from public company to private one?
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There is also a trillion $ version of that story, that's usually pulled against recent grads
Well funded startups can't offer 1 employee hundreds of thousands in options, unless they are like Uber a year or two ago. Their valuation was so high, they can afford to toss around massive options that could be worth millions.
For the rest of the valley startups, they'll sometimes throw serious money if a candidate is a game changer to their growth, but as soon as you said well funded, my guess is 30~50% drop in RSU/Options and probably a lower base salary.