How would you account for annual RSU grants of 65k with a 4 year cliff in TC for years 1-3? A quarter each year? The NPV? Nothing since it’s too speculative that you’ll stick around 4 years?

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For what purpose? Net worth calculation? Total comp calculation?

I use the current value of all RSUs in my net worth calculation based on the premise that I don’t plan on leaving and reasonably believe my job is safe.

For total comp, I use the amount of my new RSU grant each year.

But in most cases, the calculation is for personal internal purposes rather than any external purpose, so do what makes sense to you.

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A 4 year cliff (not one year cliff and three more years of monthly vesting) is way off market. This is a huge red flag to me--shows management thinks the equity "is theirs" and also that they don't truly believe in incentivizing employees with equity. This will lead to hiring issues, getting lower quality candidates, distrust bw mgmt and employees.

I would not accept an offer with a full 4 year cliff (as opposed to vesting over 4 years). It's really a huge, huge red flag.

Also, vesting is set by the board every time they make grants, so to act like they cant possibly change this or move more toward market? Also a bad sign.

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I think 3 year vesting is more common than 4. In any event, I’d count the full value as comp in comparing salaries. Same with bonus. No telling what/if you’ll get it, but unless you can get solid info on typical results go with the full target. Base+target bonus+annual RSU grants. Hopefully you won’t have your company taken over and have the new owner cut your RSU’s in half like mine did.

@SC, as I said above, I wouldn't even consider an offer from a co that does this. Full stop. The founders/mgmt will undoubtedly be total nightmares if they buck standard compensation trends.

Imagine asking for a raise somewhere that they feel you don't deserve any equity until you've given FOUR YEARS to. They will laugh.

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