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Hi All, I am currently in Wipro and have two offers in hand. One from Tata Consultancy and other from DXC Technology . Both are based in the UK. DXC is offering 6percent higher package than TCS. DXC is completely remote job and TCS is twice a week. I am confused which one to go with, haven't heard any experiences of people working DXC. Though the work in both the role is pretty much the same of a Senior back end engineer. Any suggestions experiences will be really helpful for me.
Every company is different but most commonly an award vests over 4 years at 6 month increments (the increments and time frame can differ). Most commonly each increment is an equal amount of RSUs but some companies dole them out in different percentages.
For ease of math, let’s say you are awarded 100k worth of RSUs over a 4 year vest at 6 month increments. Let’s also say that the value of those RSUs was $100/RSU at the time of the award.
You will be given 1,000 units total. Every six months 125 of those are yours to keep or sell and the dollar value is dependent on the stock price. They will sit in your brokerage, which will be set up by your employer, somewhere like E*Trade.
Hope that helps! Happy to answer more q’s as well but tried to make it as simple at possible.
Yep! Exactly. You do have to pay taxes which will depend on the stock price and how long you hold it for so there are def reasons to hold onto it longer sometimes.
I got an offer for “$160k” worth of shares vesting every 6 months for 4 years, which granted a few months after I started.
Let’s say that the stock price is $100 on the grant date. In that case I’m granted 1,600 shares.
After 6 months I get my first vest of 200 units (1,600 / 8).
Now if the stock price hasnt changed I’m getting $20k worth of units I can sell right then and there (less taxes). If the stock has doubled the 200 units would be worth $40k (less taxes).
Now after a year I get refreshers - maybe another $100k vesting in 6 month intervals over 4 years. Assuming the price is staying flat at $100 then that’s another 1,000 units. That means every 6 months I’m getting 200 units from the initial grant plus 100 units from the second grant, or about $60k in stock I can sell every year (less taxes).
Now in reality my company’s stock goes up so it’s worth more than that. What happened to me is mine vested right at the peak and then crashed these last few months so I paid taxes on stock I didn’t sell and ended up being worth less. I could sell and I think deduct the loss or something, but I just tend to hold my RSU’s and sell my ESPP.
For people who have been with the company a long time, they have crazy high w2 incomes due to refreshers and stock appreciation