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I value them as part of my TC based on how much will vest in one year, not the entire grant amount. I sell immediately upon vest (not a tech company so I don’t expect the stock to be a rocket ship).
Rising Star
I view it as part of my comp, not my investment portfolio. 3 years isn’t bad for vesting schedule, (it’s often 4). They’ll probably withhold 20% of that for taxes. And then you’ll owe extra taxes on any gains.
e.g. if it’s granted to you at $80 and you sell at $100: 1) the original $80 value is taxed as income (and covered by that 20% withholding); 2) the extra $20 in profit is taxed separately as capital gains.
If you have to choose beforehand between RSUs in cash or RSUs in shares, which is better?
Dollar amount means you’ll receive a number of RSUs worth that amount based on either a VWAP formula or closing price or some other formula depending on the award agreement’s terms. Worth checking if it is payable in shares only cash or shares, and also be careful with vesting, most people withhold for taxes by getting less shares issued.
Most people consider the full RSU amount as part of total comp, but the tax withholding will be something you’d need to consider on a net income basis that you’d receive. You may be able to negotiate a higher base it all depends on how standard their comp program is.