New York City will make it mandatory for companies to post salaries on job ads

Re:New York City will make it mandatory for companies to pos... by wan23 on Thursday January 06, 2022 @03:07PM (#29829254)

This isn't right because you're granted the stock when you start, and can sell when you vest vs with your salary you can only invest it after you receive it. Here's an example. Let's say you get hired today with a package that amounts to $200k salary + $100k/yr RSUs over 4 years at a public company. Let's also say the stock is increasing at a rate of 10%/year.

Year 1: $200k salary + $110K stock = $310k TC

Year 2: $200k salary + $121K stock = $321k TC

Year 3: $200k salary + $133K stock = $333k TC

Year 4: $200k salary + $146K stock = $346k TC

Without any kind of raise or refresher grant you're making 15% more total in year 4 than when you started. When the stock vests, you pay tax as if it were ordinary income, and you can sell immediately for cash.

That example was for a stock growing at 10%. Now consider if that company was Alphabet.

Stock price for GOOG on Jan 1, 2019: 1116

Stock price for GOOG on Jan 1, 2020: 1434 (+28%)

Stock price for GOOG on Jan 1, 2021: 1835 (+27%)

Stock price for GOOG on Jan 1, 2022: 2753 (+50%)

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Re:New York City will make it mandatory for companies to pos... by oh_sigh on Thursday January 06, 2022 @05:17PM (#29831183)

Sure. Now consider the opposite where the stock flatlines for 4 years whereas the market otherwise goes up. Not as good of a deal any more.

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Re:New York City will make it mandatory for companies to pos... by joshuamorton on Thursday January 06, 2022 @07:30PM (#29832883)

Then its exactly the same as if your salary were 110K higher each year, so its no longer a better deal, but its not a bad one unless the stock (significantly) underperforms whatever your normal investment mix would be.

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