Well it depends on how the RSU is set up of course. All the equity I’ve apparently received in my time is still waiting on “defined liquidity event” before I can do anything at all.
You got RSUs(restricted stock units) from a startup?
For startups those will usually be options (not RSUs) which do not materialize until an exit event. There can be liquidity events before exit as well if the company is doing well.
RSUs are usually offered by publicly traded companies and basically as good (or better) than cash.
No, not from a startup. It might be worth mentioning that I’m in the U.K. so the terms and lingo may differ from yours.
I’ve had RSUs from series D scale ups. I’ve had options from start ups. Typically in the UK they’re wrapped as an investment you make on entry (using a loan the company offers you) to only pay capital gains tax (25% in the UK). And I’ve had RSUs from big, established enterprises.
What’s common to them all, for me, is that they’ve broadly not paid out what they were advertised to, either because the stock falls (Unity springs to mind), you leave before anything material vests (and the hiring company matches your RSUs) or there’s no liquidity event.
I trust cash, paid into my bank account. The rest, IMHO, is just trumps (US: farts) in the wind.
Oof Unity is just bad luck. Most other tech stocks have done well.
Most big tech will vest monthly/quarterly and you can setup an auto sell when your stock has vested. This is literally cash in your bank account every vesting period.
Well it depends on how the RSU is set up of course. All the equity I’ve apparently received in my time is still waiting on “defined liquidity event” before I can do anything at all.
You got RSUs(restricted stock units) from a startup?
For startups those will usually be options (not RSUs) which do not materialize until an exit event. There can be liquidity events before exit as well if the company is doing well.
RSUs are usually offered by publicly traded companies and basically as good (or better) than cash.
No, not from a startup. It might be worth mentioning that I’m in the U.K. so the terms and lingo may differ from yours.
I’ve had RSUs from series D scale ups. I’ve had options from start ups. Typically in the UK they’re wrapped as an investment you make on entry (using a loan the company offers you) to only pay capital gains tax (25% in the UK). And I’ve had RSUs from big, established enterprises.
What’s common to them all, for me, is that they’ve broadly not paid out what they were advertised to, either because the stock falls (Unity springs to mind), you leave before anything material vests (and the hiring company matches your RSUs) or there’s no liquidity event.
I trust cash, paid into my bank account. The rest, IMHO, is just trumps (US: farts) in the wind.
Oof Unity is just bad luck. Most other tech stocks have done well.
Most big tech will vest monthly/quarterly and you can setup an auto sell when your stock has vested. This is literally cash in your bank account every vesting period.
I wish every company would adopt quarterly vesting. Yearly vesting schedules are obnoxious and can really screw people over.