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by ricardobeat
1425 days ago
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When someone says $500k/year, they usually mean a package like $150k base + $350k stocks with yearly grants. For the standard 4-year vesting schedule, and assuming a new $350k grant every year, this means actual earnings are: Year 1: $150k + $0 $150k
Year 2: $150k + $87.5k $237.5k
Year 3: $150k + $87.5k*2 $325k
Year 4: $150k + $87.5k*3 $412k
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. |
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