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by faang_employee
2198 days ago
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There's a difference, because you are given a number of RSUs at hire with some monetary value, so on this example you would be given RSUs worth of 800k at the time of hire, which would be 200k per year (they vest over 4 years). If we run this example just for 2 years you will start to see the difference: Year 1:
At Netflix you get 400k in cash, you buy 200k of FB stock, so you have 200k cash, 200k worth of FB stock
At FB you get 200k of cash and 200K worth of stock Year 2 - FB stock goes up by 10% so 200k of FB stock from last year is now worth 220k:
At Netflix you got another 400k in cash and you will buy another 200k worth of FB stock. So now you have 400k of cash and 420k worth of FB stock
At FB you get 200k of cash and 220k of FB stock, so now you have 400k of cash and 440k of FB stock. Also RSUs vests quarterly so you can (and should) sell it and invest in other things to diversify. |
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