ServiceNow Comp Structure
I understand ServiceNow RSUs vest over four years, paying out quarterly. My understanding is they do refreshers each year. So, in year four you're seeing the full amount. My question is do they have a cash component for the first three years? T-Mobile doesn't. But their RSU grants are so small, it's not a significant portion of your total comp. With ServiceNow the RSUs would be a large portion of my comp, so not having a cash component would be tough... TC: 0 Previous TC: 289 #tech #ServiceNow
Not sure what you mean cash component? Each year they have refreshers around $75-150k. There is an annual bonus as well, that’s a cash bonus. It’s all level dependent. Once you hit cliff and start vesting it is each quarter. You will never be fully vested if you continue to get refreshers. That’s the point. It’s called LTI. Long Term Incentive. Meant to keep you around as long as possible. More senior you are, more you get.
Let's say my total comp target was 200k. 100k salary, 100k stock. In the first year I'll get 25% of my stock. The second year I'll another 25% of my first grant and 25% of my second grant. Etc. Will they pay the other 75k in cash (cash component) the first year? And 50k in cash the second year? And 25k in cash the third year? Or, during the first three years will I be working for 150k less (75k first year, 50k second year, 25k third year) than expected?
What do you mean pay 75k/50k/25k in cash? Your cash component will be your bonus based on performance not RSUs. Usually bonus is not includes in TC , but you can get a range by talking to the recruitor. I dont think RSU refreshers are based on your initial grant, they would most probably be based on either your performance or level of role at the org.
Refreshers start to vest immediately. There is also a separate cash bonus
Is this the case for refreshers at all org's or its org specific? My org has a cliff of 1 year for refreshers
DM for ServiceNow referral if see fit
Cash is king. Aim for cash than RSUs. You will also be able to diversify from just SNOW stock