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by edmundsauto 1057 days ago
RSUs that you can sell are effectively cash, not a lotto ticket.
1 comments

They depend on the stock which is totally unpredictable

For example, literally the day before I started at my last company, their stock went from $120 to $40

So yes it’s a lotto ticket

I just… sell the stock when it vests? I guess I can see your pov is consistent as long as you consider every stock as a lotto ticket, but I don’t think that’s the typical opinion.
Problem with this approach is RSU grant price is fixed at when you join the company.

You could sign job offer with $1M in RSUs at $100/sh for 10k shares, but you would have vested only $500k worth of shares if price decreases to $50/sh a year after, when you reach cliff vest

So selling at vest does not decrease your risk between RSU grant date and vest date