How does the RSU work at Stripe? Is it where Stripe gives you the cash value at the end of year?

SAP
007111

Go to company page SAP

007111
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

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TOP 8 Comments
  • Microsoft / Eng
    Chasing๐Ÿ’ธ

    Go to company page Microsoft Eng

    Chasing๐Ÿ’ธ
    My understanding of AVG(Annual Value Grant) is X $ amount every year gets converted to Y RSUs at whatever exchange rate (FMV- fair market value) is assessed in the latest 409a, and granted to you, and it begins vesting at grant date, 1 year after, then every quarter.

    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)
    Dec 20, 2021 3
  • Amazon
    kindsza

    Go to company page Amazon

    kindsza
    Any rsu given by private company need a liquidation event either ipo or something else.

    Otherwise yes you just hold paper.
    Dec 20, 2021 0
  • New
    dukhdard

    New

    dukhdard
    Same query.
    How do private companies(e.g. Cohesity, Rubrik) offer RSUs? How are they different from ESOPs of other private companies? Why donโ€™t the rest of the startups also offer RSUs?

    Someone please explain. Thanks.

    -new grad
    Dec 20, 2021 0
  • Apple
    code jello

    Go to company page Apple

    code jello
    Stripe grants you RSUs every year that vest the same year

    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
    Dec 29, 2021 0
  • Amazon
    AMZN_HQ2

    Go to company page Amazon

    AMZN_HQ2
    Following
    Dec 20, 2021 0