Comment by rahimnathwani
18 hours ago
It seems unlikely that regular employees would be issued RSUs. Tax is due at vest, and you can't liquidate to fund the tax bill.
18 hours ago
It seems unlikely that regular employees would be issued RSUs. Tax is due at vest, and you can't liquidate to fund the tax bill.
There's double trigger RSUs and so on that allow you to have reasonable tax treatment, due to the theoretical threat of loss if liquidity isn't available. I worked at a company that had this at least while I was there.
I was a regular SDE at brex for a couple years and my various documents about comp say I have RSUs, and carta says so as well.
I've never bothered to understand the details since none of the private companies I've worked for have had the non-cash portion of their comp be worth anything but $0 before.
The usual move here is "double trigger" RSUs that don't vest until a liquidity event, thus no taxes due until said liquidity event.
Right. Plus often the tax is paid out of RSUs given, you just get less in RSUs, some is subtracted to pay tax.
Are those common for regular employees?
highly common
Nope, you as a company owner are highly motivated to shift to RSUs once you hit a certain valuation and number of employees. Everyone does it.
Can you expand on why at a certain valuation and size you would shift?