I agree. In this example we took few assumption just to explain how things work. Assumption: 1) You will get Refresher every year of 0.25X of initial RSU ( Depends on your organization, performance and other factors) 2) Price of Stock is constant over time ( In Reality it varies) 3) No increase in Base Salary ( It generally increase)
I believe the 10k stocks you mentioned as refreshers, they will be vesting after 4 years right? Meaning that you can't sell 50k worth of stocks in second year, but rather only 40k?
Thank you. Question though in this example you used 160k for 4 year vesting hence it is 40k per year. Subsequently, there is a refresher of 10k per year. Q1: What is this refresher 10k based on? Or it is just a general assumption that it would be 10k per year going forward to keep you in the company? Q2: Correct to say that in Year 8 i will only get 10k of stock as compares to Year 4 if me getting 70k? If my understanding is correct then how does the company retain beyond year 4? (Unless the refresher is higher than the 10k example?)
10k I took as an example to explain how this things work. Refresher depends on company to company and also depends on individual performance, level they join , promotion etc. Two person joining the company may get different refressher depending on their performance and level. Some companies do provide some extra equity to some engineers to retain them after 4 years but that is rare and hence, it's very common for employees to leave the company after 4 years. Many stays because their stock price skyrocket and it is hard to get good salary outside. Hope it answer your question.
Nice video ! It’s clarified all my doubts on refreshers.
Great video and explanation!
Well explained! Expecting more videos like this! Thank you 🙏🏻
Glad you liked it! This is now inspiring me to make more video.
After you hit 40 (year 5) it will be 40 only every year it won’t go 40, 50, 60 again unless you get more Annual refreshers
I agree. In this example we took few assumption just to explain how things work.
Assumption:
1) You will get Refresher every year of 0.25X of initial RSU ( Depends on your organization, performance and other factors)
2) Price of Stock is constant over time ( In Reality it varies)
3) No increase in Base Salary ( It generally increase)
I believe the 10k stocks you mentioned as refreshers, they will be vesting after 4 years right? Meaning that you can't sell 50k worth of stocks in second year, but rather only 40k?
good explanation
Thank you. Question though in this example you used 160k for 4 year vesting hence it is 40k per year. Subsequently, there is a refresher of 10k per year.
Q1: What is this refresher 10k based on? Or it is just a general assumption that it would be 10k per year going forward to keep you in the company?
Q2: Correct to say that in Year 8 i will only get 10k of stock as compares to Year 4 if me getting 70k? If my understanding is correct then how does the company retain beyond year 4? (Unless the refresher is higher than the 10k example?)
10k I took as an example to explain how this things work. Refresher depends on company to company and also depends on individual performance, level they join , promotion etc. Two person joining the company may get different refressher depending on their performance and level.
Some companies do provide some extra equity to some engineers to retain them after 4 years but that is rare and hence, it's very common for employees to leave the company after 4 years. Many stays because their stock price skyrocket and it is hard to get good salary outside. Hope it answer your question.
well explained sir but my doubt is can we sell those stocks after we get every year?
or are there any rules like we have to hold them until we leave the company?
Once the stock is assigned to you, it's yours. You can sell it.