undefined | Better HN

0 pointsfishpen01y ago0 comments

> You can always sell your RSU immediately to get cash.

This is not true at all. My current company is privately held and has RSUs. Over the last two years there has been a single buyback and it was at a fixed closed market price and we were limited to selling 10% of our vested RSUs. Lots of startups flipped to RSUs with no plan to go public or be bought out in the last few years.

Additionally, even if your company is stable RSUs are frought with issues like what happened two orgs ago where a blackout period started and our stock went into a 30% free fall during the blackout and never recovered. We ended up getting a tender offer, the company sold to private equity and unvested shares were clawed back

0 comments

sashank_15091y ago

Private company RSU’s are a different ballgame entirely. They are essentially paper money and I would classify them under startups.

Yeah I’d agree for a more risky venture, cash is better (unless you are in a gambling mood), I’d disagree that being true for FAANG or any of the 100 billion + tech companies (Airbnb, Uber, snowflake, Palo Alto networks etc)

j / k navigate · click thread line to collapse

0 comments

sashank_15091y ago

Private company RSU’s are a different ballgame entirely. They are essentially paper money and I would classify them under startups.

j / k navigate · click thread line to collapse