RSU

“Does it impact the company in the short term? No, but it creates a comp issue because people are paid in RSUs. So the main things you have to worry about is, okay, so what does it change to comp and how can we manage that?”

“No options, no RSUs, no stock, no, like, any of that BS. I find almost all that to be pretty much BS, unless you're like a really well-established public company.”

“So we rebuild our compensation system to completely work the opposite of what everyone else does. We give people, here's your annual salary. Here's an internal system. You go in, you look at it. This is a number. Now you get sliders. You can say, how much do y…”

“It just creates sort of a risk averse behavior in the CEO. Like it's basically cash comp goes up and down a little bit, let's say, but an ISO you're swinging for the fences. Like you've got a strong incentive to swing. And so it's really had a dampening effect…”

“A lot of that is driven by taxes in the US. It's not really driven by liquidity for investors. It's driven by this brutal tax situation of RSUs expiring. They're expiring on employees and they're becoming taxable events before the IPO.”

“There's an argument from Black Shoals that a single RSU is worth about two and a half or three options. So if you could switch From these options to an RSU, this investor thought dilution might drop from, say, four percent to 1.2% or something like that, and t…”

“Here's where we get into questions of alignment with shareholders, because you could theoretically have a management team that leads a company, you know, over a year to a 20% decline and pick up 80% of the value of their equity award. Whereas shareholders are …”

“There's tons of companies who are implementing RSUs really, really early now. Or they're implementing RSUs when, like, the . Like, there isn't necessarily a need or a good reason to.”

“There's really no scenario where RSUs are better than options in that model. And so from a pure upside, from a pure opportunity perspective, from a flexibility perspective, from a tax perspective, from an administrative perspective, there are lots of advantage…”

“We think of RSUs at a place like Google is, is value preservation, right? They're in a value preservation mode growth, but not huge returns, and you're giving an employee a share of stock, it's got value, that employee can look at that share and say, at the en…”

“Look, it's sometimes a seven to 10 year run before you're looking at an IPO, and now you're forcing kind of a present value equity form that has tax implications on employees and it's, you know, you're not seeing the exit event as”

“I thought the thing that they did really well was treat the investors and the stock option holders as part of a payout on deal close, and then really be thoughtful about how to retain employees with retention mechanisms, like things like RSUs, employee bonuses…”