I just… sell the stock when it vests? I guess I can see your pov is consistent as long as you consider every stock as a lotto ticket, but I don’t think that’s the typical opinion.
Problem with this approach is RSU grant price is fixed at when you join the company.
You could sign job offer with $1M in RSUs at $100/sh for 10k shares, but you would have vested only $500k worth of shares if price decreases to $50/sh a year after, when you reach cliff vest
So selling at vest does not decrease your risk between RSU grant date and vest date
Comments
RSUs that you can sell are effectively cash, not a lotto ticket.
They depend on the stock which is totally unpredictable
For example, literally the day before I started at my last company, their stock went from $120 to $40
So yes it’s a lotto ticket
I just… sell the stock when it vests? I guess I can see your pov is consistent as long as you consider every stock as a lotto ticket, but I don’t think that’s the typical opinion.
Problem with this approach is RSU grant price is fixed at when you join the company.
You could sign job offer with $1M in RSUs at $100/sh for 10k shares, but you would have vested only $500k worth of shares if price decreases to $50/sh a year after, when you reach cliff vest
So selling at vest does not decrease your risk between RSU grant date and vest date