How does the RSU work at Stripe? Is it where Stripe gives you the cash value at the end of year?
Dec 20, 2021
8 Comments
Granted they are private so does this mean you just hold onto the RSUs for dear life until they IPO.#stripe
comments
Example of AVG for 100k, assuming a 4year vest (409a value chosen arbitrarily):
Year 0: 100k @ 10 usd = 10000 RSUs granted, 10,000 total granted, 0 vested, 0 total vested ($0).
Year 1: 100K @ 17usd = 5882 RSUs granted, 15882 total granted, 2500 vested, 2500 total vested ($ 42.5k)
Year 3: 100k @ 25usd = 4000 RSUs granted, 19882 total granted, 3970 vested, 6470 total vested ($161,750)
Year 4: 100k @ 31usd = 3225 RSUs granted, 23110 total granted, 4970 vested, 11440 total vested ($400k)
So just to clarify: on the second year, do you get 100k conversion at the beginning of the year, then vest quarterly 1/4 of thatโฆ
or do you get quarterly conversion and instant vest? So always 25k?
If the latter, then it sucks haha.
Otherwise yes you just hold paper.
How do private companies(e.g. Cohesity, Rubrik) offer RSUs? How are they different from ESOPs of other private companies? Why donโt the rest of the startups also offer RSUs?
Someone please explain. Thanks.
-new grad
First vest is after 12 months, then quarterly
Their annual grants are guaranteed and very competitive, I don't think they'll keep that up
FAANG is currently handing out 650k for senior engineer with yearly refreshers for 100
That means over 4 years fang will give you 650+75+50+25=800
Stripe could give you 250k annually that looks like 1M with limited appreciation because they don't grant you all 1M at once to vest over 4 years, they spread up the grants
The upside will come from year 5 where fang would still give you 100k grants but stripe would keep giving you 220k