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by tidepod12
2467 days ago
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The companies that I am aware of award stock units based on their monetary value. If the stock is worth $100/unit, and your TC is to get $100k in stocks, you get $100k in stocks. If the stock falls to be worth $50/unit, you still get $100k in stocks. Your compensation has nothing to do with stock price. Your decision to sell or hold onto the stock is an investment decision made by you, but isn't really relevant to the discussion of "this is how much money was given to me by my company". |
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But if you are granted $100k worth of stock in February, and the stock price drops by half in March you're only getting $50k worth of stock. Come next February, your stock grant will probably have a higher number of units to account for the drop in price, but you still earned less than $100k in stock the previous year.