For people in tech or working at companies that offer compensation in equity, what are your thoughts on it?

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Great question! Commenting so it’ll be on my feed.

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Thanks!

I joined a tech company 2 years ago and basically have just thought of my equity compensation as a bonus, and I’ll never know how much $ in stock it’ll be getting in a given year with the fluctuations in the stock. Having the base salary I was looking for was key for me (I have 2 kids so stability is important) but I see the equity as a way to really boost wealth if the company’s stock takes off so it’s a nice incentive. I’ve received 3 grants at this stage. With the stock market having tanked since 2021, my first 2 grants became very devalued and my most recent grant is worth 2.3 times the other 2 combined so I’m hopeful for increase in stock price and a nice payout but again, not counting on it and I’d consider it all extra income.

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I always liked having part of my incentive comp in stocks. I think it keeps the interests aligned and motivates me to work harder. The downside is that it does make the decision to leave more difficult and certainly more concentration risk.

Not all stock options are the same. RSUs, stock options, etc. Also the vesting periods vary. It’s important to understand. I have had stock options go underwater at Fortune 50 company. Also had RSUs which are more predictable but not much upside.

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