[freyir]

When so much of your compensation is tied directly to the stock price, you also need to make a guess where the stock price will be in 2-4 years compared to your other options.

FB is not cool, TikTok is eating Instagram’s lunch causing IG to pivot more to video, so it comes down to the Metaverse.

[voidfunc]

You just sell the stock every year and switch it to S&P 500 if you're that worried...

[d23]

If the stock price for the company goes down, the value of your unvested stock goes with it.

[wikibob]

This is a common misconception.

If the value of your invested RSUs go up: fantastic now you make more.

I’d the value of the invested RSUs go down: no problem, you evaluate if you want to wait to see if they go up, or if you want to go into the market and take a new job.

It’s nearly all upside for the employee (in a hot market).

[d23]

It's not a "misconception." I may not want to go find a new job in 6 months because the stock tanked. There's opportunity cost if nothing else. While that company's stock is tanking, I could instead be at one that's growing at even a modest rate.

[runako]

While true, frequently cash-rich companies account for this. There are a lot of levers CFOs of profitable companies have to prevent people from leaving when the stock drops: issuing more shares, cash bonuses, etc. Facebook and Apple have more than enough cash to retain their talent in the event their stocks get cheap.

[freyir]

Still, they’re likely to readjust your comp back up to baseline.

You face the opportunity cost of not working for a company whose stock will rise fast, making it worth much more in years 2-3+ than it was initially priced at.

None of us have a crystal ball though, so it’s all speculation.