[Apocryphon]

Is this really accurate? And even if total comp is somehow $400k, how much of that is equity, and how many senior engineers are liquidating it every year to get $400k in cash? That seems wildly overblown. And that equity shouldn’t be factored into the above breakdown anyway, at least not in the taxes calculation!

[baron_harkonnen]

RSUs are not the same as private equity in a startup. While they are subject to market fluctuations they can be liquidated immediately on vesting (annually then frequently quarterly). They are taxed just like regular income... because they are regular income.

As to how many engineers are liquidating at vest? It’s honestly the most sensible option to diversify quickly since you don’t want your investment, savings and income all tied up in one company.

[scarmig]

Equity is a whole lot of that. And yes, people liquidate it immediately. RSUs count as income.

[twblalock]

I'd say most of the FAANG engineers I know cash out their RSUs when they vest, or within about a year or two after.