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by singron
901 days ago
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I've had options at 2 companies and RSUs at 1, and I have a similar story (bigger earnings on RSUs, bigger "losses" on options (I technically still hold exercised stock, although I don't anticipate ever being able to sell it)). A huge part of this is that a company won't issue RSUs unless it's already reasonably successful and the shares are liquid or nearly liquid, whereas options are issued by early stage companies that are mostly likely going to fail and are far from a liquidity event. As an employee, options just aren't good compensation since they have too high risk and you can't work at enough companies to form a portfolio. The VCs that invest in these companies expect to win on less than 1/20th of the companies with preferred shares, so it's quite likely you will never make money on options in your entire career. People talk about taxes a lot, but the most important factor is whether you are going to make money at all. There is no point in optimizing taxes on your gains if you are making losses instead. |
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