MartyFr

Account Executive

New to RSU ; Whats the rational?

Hello Guys,

The company I was interviewing for just made me an offer including RSU. Since I'm not familiar with this I would love to hear your experience.

The offer contains 1500 RSU that are worth 100 to 110K$. What's the rational behind that? How to double check?

Thanks in advance!

😊 investment

☁️ Software Tech

20 comments

Sort by:

antiASKHOLE

Tycoon

Bravado's Resident Asshole

I had no idea what RSUs were and now I am intrigued. Following to learn.

braintank

Politicker

Enterprise Account Executive

https://carta.com/blog/rsu-restricted-stock-unit/

DungeonsNDemos

Big Shot

Rolling 20's all day

This is the way!
RSU's are long-term moonshot play (basically)

FinanceEngineer

Politicker

Sr Director, sales and partnerships

Depends on the state of the company. Usually RSUs are given when the company has public equity, so they vest in annual chunks. Remember that you have to pay tax on them at each vesting point, while options don’t have that tax trigger.

For public companies - treat it as part of your salary.

For pre-IPO companies - treat it as bonus cash at a steep discount to the price with a cost for taxes.

TennisandSales

Politicker

Head Of Sales

i have had RSU's at 2 companies and they are an awesome benefit.

here is how this works:

there is a vesting period most of the time is ether every quarter or it could be annually.

at that time, a portion of the RSUs will "vest" meaning you can sell them. the price that you sell them at is what ever the companies stock is trading for AT THAT MOMENT. (if you are not a public company their is still evaluation that is done and its common for this to be done annually. this decides the price per unit.)

then you can sell them at that price point. its taxed and then given to you as cash. then you can do what ever you want with it.

when they vest you dont HAVE to sell, but you can (i always have because i treat it as a cash compensation)

so if the company is telling you 1500 shares = $100,000 then each share is around $66.

this price can go up and down so just because they SAY its worth that much doesnt mean that is what it will end up being worth.

happy to share more ask me your questions.

Sunbunny31

Politicker

Sr Sales Executive 🐰

This is correct! Thanks for the thorough explanation.

TennisandSales

Politicker

Head Of Sales

🙌🙌🙌

CuriousFox

WR Officer

🦊

I just learned something new.

TennisandSales

Politicker

Head Of Sales

BOOM! love it.

Diablo

Politicker

Sr. AE

Thanks for this simple and insightful explanation

TennisandSales

Politicker

Head Of Sales

your welcome glad I can help.

Gasty

Notable Contributor

War Room Community Manager

RSU? Is that like a Ridiculous Stock Unit?

Notmyrealname

Politicker

From what I know (not very much) RSUs will give you the stock or cash value of the stock once your vesting period is complete. Better than stock options where you have to buy the stock at a given price. Value of RSUs/options can change because stonks, so you can check what they're worth now by go ogling the stock but that could be up, down, or the same by the time you actually get them.

TennisandSales

Politicker

Head Of Sales

yes much better than Stock options IMO because you dont have to spend your OWN money to get the benefit. ive had stock options and RSU's which is cool cus you COULD use the RSU to buy out your options and then no real money comes out of your pocket.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

As long as they aren’t giving you RSUs in lieu of other compensation (like salary) than it’s all cool.

Sunbunny31

Politicker

Sr Sales Executive 🐰

RSUs are great! TennisandSales has an excellent explanation below. It's an added bonus, and it's the one thing I didn't get here at my new company that I regret. Make sure you understand the tax implications when you exercise your options so you're prepared when you file that year, but enjoy.

PineappleYa

Opinionated

Yes the issue is RSUs follow as you mention the value of stock so today’s maybe worth that 100k tomorrow could be worth 40k… so negotiations should def still leverage ote

Kosta_Konfucius

Politicker

Sales Rep

No idea but good lucj

SADNES5

Politicker

down voters are marketing spies

Questions to ask.

Vesting period. How long before you can cash out.

Wise piece of advice. Convert the RSUs to real stock or diversify as soon as possible. This way you can take it out and use it when you want - not in some arbitrary week.

If you believe in the company - I say again. Do not leave the stock as RSU. Sell it and buy back regular voting shares that you can sell anytime.

AMA about RSUs.

GDO

Politicker

BDM

RSU s are you quite common. They are used to tie you into the company. Make sure you don’t leave. Yes they vest. However by that time you have even more RSUs vesting in x time

Bravado is a community of trusted sales professionals endorsed by their customers.

Products

The War Room Jobs Salary Guide Tech Sales U

Company

About Us How It Works Blog Bug Bounty

Contact

Press Careers

If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.

MartyFr

New to RSU ; Whats the rational?

20 comments

Related posts

What's the best way to find new business in the field?

whats WR ALL ABOUT , I AM NEW