Re:DoorDash removing 1-year cliff for equity grants
by dabfiend19 on Wednesday July 07, 2021 @04:50PM
(#27765593)
I work at a smaller company, and here we convert the $ price to a number of shares by taking the 100 day VWAP of the stock from the date of the board meeting where your grant is approved.
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Re:DoorDash removing 1-year cliff for equity grants
by devoutsalsa on Wednesday July 07, 2021 @05:19PM
(#27765842)
I had to google it...
VWAP == Volume Weighted Average Price
Re:DoorDash removing 1-year cliff for equity grants
by flatiron on Wednesday July 07, 2021 @04:57PM
(#27765650)
Either we work at the same place or that’s very common.
When I joined I got a random email that said “your rsu $ to shares conversion was X shares and here’s your schedule” and my schedule is all in # of shares not $
Re:DoorDash removing 1-year cliff for equity grants
by B-Con on Wednesday July 07, 2021 @05:51PM
(#27766122)
This is very common. It's basically the point of paying in RSUs and not in fixed dollars, to give employees incentive to care about the company/stock performance.
Re:DoorDash removing 1-year cliff for equity grants
by echelon on Wednesday July 07, 2021 @05:01PM
(#27765683)
Yes, but then they take that calculation to grant you a set number of shares (ISOs, RSUs, etc.) that doesn't change. The value of your award grows with the growth of the company.
ESPP-like programs, on the other hand, are always dollar denominated and exchanged at a set rate at the end of the offering period.
Re:DoorDash removing 1-year cliff for equity grants
by joshuamorton on Wednesday July 07, 2021 @10:17PM
(#27767861)
GP is correct in that some companies (Stripe, MS, others) convert the dollars to shares at vest time, while others do so at grant time.
The first way makes employees lose out on an average of 2 years of stock growth.