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Personal Finance (Not Investing) • Stock based compensation - advice needed

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my rough approximation (more tech than oilpatch)

RSU's: as long as you stay employed, you will get some stock doled out at various intervals(say twice a year over 4 years)... basically you get payed in shares, and as part of your annual raise, you'll get another slug of RSU's paid out over the time frame (say 4 years from raise time)

options: you will get the right to buy some shares in the future (vested over a similar 4 year calendar) at a fixed price (usually close to the market price when the stock is granted)... usually you would need to get 3-4X the amount of options as RSU's to be on a level playing field, but there are lots of variables in play.... options are more volatile, and may trend to become worthless if the stock goes down.

ESPP:
you can typically buy the stock at a discount (5-15%), at the lower of the prices of the beginning or end of a 6 month period... IRs caps this at 25k$/year

Statistics: Posted by privateer79 — Sat Nov 02, 2024 12:55 am — Replies 5 — Views 335



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