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by daggerdrone
1426 days ago
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Sorry but that's not how it works. $500k/year would mean roughly $250k base+bonus and $1 million of stocks vested over four years. And at most companies, the vesting starts after 1 year. So at the end of year one, you would have made $500k in base+bonus+stocks. And after that you would usually get the stocks every quarter so $62.5k worth of stocks every quarter. I am not sure where is your figure of 200-250k Total Comp coming from? |
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For the standard 4-year vesting schedule, and assuming a new $350k grant every year, this means actual earnings are:
If you leave here, at year 4, and lose all unvested options (expected), your actual average was $281k/year.Only by year 5 you'll finally actually earn the $500k/year, and the vesting schedule has such an impact on the early earnings that even after a decade, your yearly average is still $400k.
Not to forget taxes. So the idea to "save for one year then take 6 years off" is kinda off the menu unless they've been at the company for a long, long time, or are willing to spend those 6 years living in Thailand.