Isn't this just a way of saying "work exclusively for public companies if you value equity"? You will not be able to sell private company shares on the market.

But I think you’re ignoring the liquidation preference discussed at the top of this thread: surely RSUs have the same junior rights as the shares from options if the company is acquired. One difference is that people are generally required to exercise options (and pay taxes on that) before they leave the company. But you also talk about selling RSUs on public markets so maybe you are thinking of something else?

Private companies sometimes give out RSUs. For instance, Uber did pre-IPO.

If your RSUs vest when your company is still private, you’ll owe taxes but not be able to sell the shares for the money you’ll need to pay the taxes. That sounds way worse than options.

The most common way to issue them is so-called "double trigger" vesting where you have both a) a service requirement (the time) and b) an event required (like IPO or sale). Since you have risk of forfeiture if IPO/sale does not happen, IRS does not deem vested (and thus taxable) until both triggers are satisfied.

I didn't say it was better! I was just pointing out that "RSU, therefore liquid" can't be relied on.

Solid

Qualtrics gave engineers RSUs in 2015 when they were still private.