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When negotiating Salary, do you mention Glassdoor, Levels.fyi, or a separate source? Or neither?? Looking at a role I’m currently a candidate for and the discrepancy of pay between Glassdoor and Levels.fyi is absurd (IE Glassdoor average salary is almost 40K higher than Levels.fyi) Glassdoor also has more “data points”, for lack of a better term, than Levels.fyi for this role.
Thoughts??
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Coach
First, congrats on the offer, excited to have you!
For your questions:
1. On the 15th of the month after you join, the $300K is actually converted to a share amount. So let’s say that Microsoft is $300 a share. That will convert into 1,000 shares over 4 years.
2. After 1 year, you’ll get 25% or 250 shares. Every 3 months after that in Feb, May, August and November, you’ll get 63 shares (6.25%) until you get all 1,000 shares. Because you get shares, if the stock goes up, that’s great, you could get more than $75K each year, since you’re getting shares.
3. LinkedIn will automatically withhold shares for taxes. So you’ll get 150 shares after 1 year instead of 250 shares for example, with the other 100 sold to pay for taxes. You’ll pay ordinary tax rates for stocks you get at time you receive them.
Very helpful, thanks!
It’s confusing. Here’s a really through and helpful guide.
https://www.holloway.com/g/equity-compensation
Your TC will be 170K + 75K equity = 245K.
For your $300K RSUs, it’s a four year schedule. Take a full year to vest (or get) your first year’s worth. After, it will likely vest monthly. Worth noting some companies don’t vest linearly (e.g. Amazon) so worth checking that.
There’s significant tax considerations. I won’t get into it in a comment but you do owe taxes on your RSUs at the value of when they vest. So, next year, if the stocks double, you’ll owe tax on the new amount. You can pay taxes early at the current price if you think the stock will go up but it’s obviously a cash expensive and potentially risky option.
Congrats though - sounds like a great gig
What’s the role?
Find out the vesting schedule. Might not always be even vesting per year. Some companies *cough Amazon cough* back load the vesting
Coach
I’m pretty sure Microsoft has a normal 4 year vesting schedule. Unless it’s changed since May 2021.
300k/4 = amount of RSUs you'll get at the end of your first 4 years
Subject Expert
Yes, and most places allow you to sell RSUs to cover taxes
yay welcome!! your recruiter should be able to break it down in great detail - the team is super helpful. what role?
What role are you looking at, @OP? Assessing an offer myself right now