How much is facebook rsu worth

Home Compensation. Feb 25, 14 Comments. Thnx Facebook. Your job offer has the dollar amount in it. Once you start, you get granted shares based on the historical price the month before you start. That remains the number of shares you have, price movement thereafter is to your gain or loss. There are additional grants during your employment based on performance, etc. Most RSU programs work like this, with some differences in grant price calculations. Feb 25, 11 4. OP the total number of shares in your entire initial grant is calculated based on your joining date.

Let's say average in Feb is Any variations in price after this doesn't affect your initial grant. I think this is how it works in most of the companies except for Amazon where they offer a fixed number of shares based on the month in which the person gets the offer Facebook also offers its employees many other benefits including paid-time-off for the most important times in your life including having a baby and bereavement as well as other great perks while working in the office.

An RSU gives employees a share or payout of the company in some future date or subject to some performance condition. This grant is denominated in dollars. Once you start, your grant is converted into RSUs based on the corresponding dollar amount. You earn your RSUs throughout your time working at Facebook. Each RSU is worth a share of Facebook stock. The value of Facebook stock changes daily, but your RSU value is equal to the value of the stock on the day you become vested.

If your calculation creates a fractional share, round it up to the nearest whole share to see the value of your Facebook RSUs. Facebook has a 4-year vesting schedule with three different ways to vest.

Facebook has four vesting dates each year - February 15, May 15, August 15, and November Your first vesting date is the first of these four dates that occurs after your start date. NSOs usually expire 10 years after grant or within 90 days if you separate from your employer. ISOs come with two favorable tax measures: First, unlike NSOs, there is no ordinary income tax at exercise though you may owe alternative minimum tax, also known as AMT.

Second, if the exercised shares are sold after two years from the date of grant and one year from exercise, the profit you make will be taxed at a long-term capital gains rate. For example, if you were granted ISOs in January and you exercise your ISOs in January of , you would need to wait to sell your exercised shares until January to meet the special holding period. Capital gains tax rates are lower than regular income tax rates, and being taxed at the lower rate can mean hundreds, if not thousands of dollars of tax savings.

These plan rules vary, so be sure to read your company plan carefully and research the tax rules that apply to your situation. Restricted stock units RSUs the most common type of equity compensation and are typically offered after a private company goes public or reaches a more stable valuation.

In this way, RSUs carry less risk than stock options. Like stock options, RSUs usually vest over several years. When doing your taxes, the value of the shares at the date of vest is taxed as ordinary income. Also like stock options, RSUs encourage employees to stay with the company longer because they vest over time. Just like your cash salary, you should negotiate your equity compensation.

Because stock compensation is generally tied to the success of the company, employers tend to prefer giving more stock over more cash.

Companies typically issue a grant of options or RSUs with your first job offer, followed by refreshers either annually or as a bonus. At the manager level, companies sometimes even give employees the option to take a percentage of their salary in RSUs versus cash.

You would come out on top if the company shares go up in the future. When you agree to any type of equity compensation, you must be careful about how much company stock to hold, balancing both the risks and the rewards of concentrating your investments around a single entity. At the onset of the global pandemic, companies like Zoom and Amazon saw surges in market gains, while stocks in companies like American Airlines and Marriott plunged. This means half of your savings is in your company stock — you may be taking a risk by putting so much money into your company.

Equity in your company should be part of a balanced approach to accumulating wealth. Consider diversifying over a few years. Then, diversify the new shares of RSUs that vest in other words, sell them and use the money to invest in other stocks. This will have minimal tax consequence. Continue to manage future RSUs and other equity compensation similarly.