Hypothetically, if one joins Stripe with an offer of say USD$150k RSU allocation in Jan 2022 and the valuation of Stripe changes within the year (another round or IPO) will there be any benefit in terms of the allocation or is it still $150k worth that you get for 2022 regardless? When is the allocation for the dollar amount determined?
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That means the number of stock units you’ll vest is frozen by the price before joining. So , even if the stock prices increase during the year or if stripe goes ipo , you will see the upside ! Though maybe not as much as typical policy , but it is not always going to remain same
The reason this does not have much of an upside is coz usually stocks go up over a long period of time, like 4 years. So if I gave you the shares equivalent of X$ now that vests over 4 years instead of shares equivalent of X/4 each in year-1, at the beginning of year-2, beginning of year-3 and at the beginning of year-4, you’ll pick the former (if you believe the company will grow).
Stripe may argue this minimizes the downside as well but you don’t join a company if you don’t believe in its growth potential.
To your point about “there is an upside of company IPOs in 2022 and my shares for year-1 were assigned in Feb”, well you could also “buy” shares in the public market when it IPOs if you are that sure of the upside.