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66 points colanderman | 2 comments | | HN request time: 0s | source
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ChuckMcM ◴[] No.34890056[source]
Okay, there are stupid headlines and REALLY stupid headlines. This is the latter.

There is a reason "equity components" of compensation are called "variable compensation" just like bonuses are. Anyone who "counts on them" is really setting themselves up for disappointment.

That people "believe" they are wealthier than they are because they are counting stock that they either don't have, or hasn't vested yet, at face value? Well that problem is quite old.

During the dot com meltdown, so many people put down payments on houses that they were going to buy with "stock options" but didn't exercise the options because once they do that, they would "stop going up." Our neighbor who was a realtor, has 8 houses "fall out of escrow" because the buyer withdrew (giving up their good faith money) before the close during 1999.

Stock based compensation == 0 until it is sold and the taxes paid, then it is worth what ever you were left with. But counting it as "income" before you sell it? Not smart.

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1. colanderman ◴[] No.34891520[source]
Amazon regularly adjusts RSU grants up and down to keep any given employee's total comp within a band. The story is that they are electing not to do so this year, despite last year's significant price drop. The net effect is the same as an across-the-board pay cut.
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2. ChuckMcM ◴[] No.34900124[source]
Okay, RSUs are an even bigger con. Google used RSUs in much the same way when I was there and it wasn't common knowledge (they were a bit less forthcoming about how your "RSU multiplier could be less than 1.0, even 0.0.") and when I was talking with an employment lawyer about them (at the time is was more focused on the employment agreement they were trying to get me to sign an "updated version" of) they suggested that NLRB action could probably help shed light on their wage schemes.