When any HR asks about current CTC you tell them the whole CTC including fixed, variable and RSU. 99% of the time they will also ask what is the fixed component in that CTC and would drive further conversation based on the same. So to answer your question, Yes you can tell them the RSU component as part of CTC but it won’t matter much because they will be interested only on the fixed component.

Variable also. That is also part of pay...why will they leave it out of discussion?

Product Manager

They think people do not get 100% variable. So they do not consider. They take the fixed component as baseline for hike.

Software Test - QA

Does RSU also be considered while negotiating when switching. Do they consider the present tc as itself with stocks while offering a package ?

Welcome to Software Engineers's Private Community

Does RSU also be considered while negotiating when switching.
Do they consider the present tc as itself with stocks while offering a package ?

Does RSU also be considered while negotiating when switching.

Software Engineer

Does RSU also be considered while negotiating when switching.- Grapevine

Welcome to Business Roles's Private Community

What is a reasonable ask while negotiating with startups?

Should I ask for a match or hike of X% over my TC/annum (52lk Base + 8lk Bonus + Rs30lk RSUs), or should I negotiate only over the Cash (Base + Bonus) component?

A startup I’m negotiating with is not considering the RSUs I have and is offering a 8% hike only on the cash component, and is throwing in ESOPs (paper money) instead.

What do I do?

Need help negotiating with a startup

Hi GV'ers, I wanted some help with understanding how RSUs should be calculated in the CTC, especially when looking to switch to another company. Here's my thing:

On joining, I was allotted ~30k USD worth of RSUs to be vested over 4 years. ¼ after completing 1 year, then equally distributed over every quarter. Now, the 30k USD was converted to units immediately, and now the units have tripled in price.

Now, does that mean my effective CTC is the base + original price of RSUs for 1 year, or should I consider the updated price? Should I only consider what has been vested so far only, then divide by YoE? What about other RSU grants for later years? I have received an additional 10k, over 4 years, again in my second year, and again in my 3rd year. I'm planning to stay for 4 years for the original vesting schedule to complete, as the other RSU grants didn't give high enough units to make me stay.

There's also 7(+5)L health insurance that's tied here as part of other benefits, but nothing else is monetary, if that helps.

CTC calculation for RSUs

Had a question, in terms of negotiation, is it easy to negotiate offer if you have the rsu component too. What if the offer only have cash component. Is that also negotiable.

Offer negotiation

Hi,

I have been working in the Software Industry for the past 9 years. I feel like I have made a good use of my time and money and maybe some of my lessons can help you folks as well. Recently did a calculation for my NW and I am happy and proud to see my NW crossing 2CR+. I have 0 debt and do not own a house. Here is how my portfolio look like

TC: 1.3 Cr
YOE: 9

I am happy to do an AMA. Ask me anything about tech, career, love, marriage, money management, therapy, songs and movies.
#Ask Me Anything #ama #amazon #atlassian #google #startups #bengaluru #networth #money management #finance #india

Sorry if delay in responses, I'll answer all your questions eventually.

[AMA] 9 years in Software Engineering in India. NW 2.5Cr

I see a lot of similar questions and I'll try to answer them here.

>>>>>>CTC Progression<<<<

My current CTC is 1.3CR . 50% is cash, 50% is stocks.

Here is my CTC progression over the years

1st - 12L
2nd - 12L (Switched Companies)
3rd - 15L 
4th - 24L (Switched companies)
5th - 42L (Switched Companies)
6th - 48L
7th - 66L
8th - 72L
9th - 1.3Cr (Switched Companies)

As you can see I almost everytimg doubled my compensation when I switched my companies. But there are reasons to stay at a company as well. If you are learning and are able to handle different problems at scale, stay. When you feel stuck, leave and look for better opportunities. I have never switched job to get more money. I love CS. I have been coding since 15 years. What made me switch was either bad managers, uninteresting problems not visibility of learning and growth.

Background:
I have around 7 years of experience. Right now doing WFH from tier-2 city and staying with family (Married so wife + my parents). My current job is good but politics and bad manager came into picture. I applied to few jobs and got an offer.

Current Situation:
The offer I got is WFO (hybrid) from Bangalore so I need to move. Increment in terms of cash is 12.5% (they dont want to push more). RSU is good and they vest in 1 year directly.
I estimate that house I require near my office (Kadybeesanahalli) will cost around 50-60k and rest budget of 50-60k. So I will save around 1-1.5L (50% will go to MF, stock etc)

Question:
Is this a good decision to move and settle there ?
New org is a reputable one and has stable job as of now

Note: I am not including my wifes salary as she still needs to search a job

Is it a good idea to move cities right now

Data engineer

Note:
1.1. The vested RSUs given by the employer are mentioned under the nature of perquisites in Form 16. The tax is already paid for it and mentioned in Form 16 as well. The same info is reflected on the ASI website.
1.2. None of the vested RSUs were sold historically.
1.3. No dividend income comes from the vested RSUs.

My doubts
2.1. For this case, do we need to disclose vested RSUs in Schedule FA form in ITR2?
2.2. If I need to disclose them, I did not know about this and filed ITR1, which was processed for the last financial year. I am yet to file for this financial year. Can I disclose all the vested RSUs from 2022 and 2023 in the current FY 2023-2024 filing?

Other Annoyances
3.1. There is a conflict among CAs as well. Some CAs say we need to disclose only when selling and not while holding, as taxes for that are already paid. Other CAs say we need to disclose even if we are holding and even if taxes are paid.
3.2. If the holdings are required to be disclosed, I wish the tax portal could throw an error in the UI if trying to submit the ITR without disclosing Schedule FA. As the IT Department has access to our Form 16, the IT portal can extract data from Form 16, check if it has RSUs mentioned, determine if the stock of the company is listed on a US stock exchange, and mark the Schedule FA form as mandatory. I don't think it is very complicated to implement this feature.

People having RSUs, please clarify

Software Developer

I have more than 3.5+ years of experience, in growth and marketing. The role is Growth and marketing manager.

Do publicly listed Indian companies offer stock/RSU for new employees. If so, how much should the ratio of stocks to the salary be?

Marketing Manager

I am a 2023 grad. I joined a startup but it is asking me to look for new opportunities. I interview at Zeta and recieved an offer. I also have an offer from Service Now.
Current compensation: 21 TC (16 base)
Zeta : 17 TC(16 base) not ready to increase even after counter offer
Service Now: 23 TC(15 base)
Hear lot of bad things about zeta like silent layoffs, 0% hike this year and we need to go to office 5 days a week where as it is hybrid at service now. Zeta has  better learning and that is the only upside of it. Would love to hear some feedback.

Need suggestions

I have around 2 years of experience.
1) 10 months in pervious company with 6 month internship and 4 month full time.
2) 1 year 1 month in current company.

I recently applied for a company and was offered an MTS role. ( 18 cash, 50 private RSUs + additional benefits) Total CTC is approximately 34 LPA

The offer sounds overwhelmingly good based on current market standards but when I checked company’s stock price in secondary markets, they are worth less than 50% of what was quoted by the recruiter.

Right now I am a bit skeptical on the stock price as the company has not yet gone public but they plan to in next couple of years.

Not sharing company and personal details for obvious reasons.

Thoughts on my offer?

Whenever a recruiter asks for your current salary, do you guys include ESOPs?
Eg. If your Fixed component is 20 Lakhs ,variable is 2 lakh and you were granted ESOPs valued at 10 lakh.
Is your CTC 22LPA or 32LPA?

Do you guys include ESOP in your CTC

Current: 24 LPA + esops

Offer: 34~36 LPA + 10% Bonus (3.4 ~ 3.6 LPA)+ $40k RSUs

Should i negotiate more or is this good enough? 

Thanks!

Good offer? Need opinions, thanks!

Welcome to Indian Startups's Private Community

How should one negotiate during transition from an RSU to an ESOP based comp structure? Should one expect a hike on base or CTC?

Transition from RSU to ESOP comp!

Welcome to Personal Finance's Private Community

My CTC break up is as follows:

Base: 19.17 L
Sign on bonus (1st year): 6.47 L
Sign on bonus (2nd year): 5.16 L
RSUs: 15.56 L

What is gonna be my in hand salary for the first year? Second year? And then on?

SDE 1 fresher comp at Amazon

Hi,

Here's a quick summary for taxation of RSU's.
This is for employees who get stocks of their parent companies listed abroad as part of their salary package.

The RSU are taxed after clubbing with the salary as a perquisite and thereafter in Capital gains arising on account of holding such shares.

At the time of grant: No tax liability.

At the time of vesting: The  fair market value of the share on the date of vesting is taxed at the slab rate by the employer by selling the shares to cover the tax liability.
Example - If you have 10 RSU vested, your employer will sell 3 RSU to cover the tax liability and will give you 7 RSU.

At the time of sale: After vesting, the difference between fair market value on the date of vesting and selling price is taxed as capital gain as below:
a) Holding period of more than 24 months,  long-term capital gain, taxable at 20% with post-indexation benefit. 
b) If the period is lesser, it is short-term gain taxable at the slab rate.

At the time of filing ITR, you should declare the holding of foreign shares in schedule FA

Taxation of RSU ( Restricted Stock Units)

Chartered Accountant

Hi Folks,

Can you help me with the difference between RSU and ESOPS ?

I'll share my understanding, requesting the community to help as well.


Assumption for comparison:

₹/$ 100,000 worth of RSU vs ESOPS vested of 4 years equal distribution from 1st Jan 2024.

RSU:
Since these are given for listed orgs,
₹/$ 25,000 worth of stocks are vested every year starting 1st Jan 2025 , 1st Jan 2026,1st Jan 2027 ,1st Jan 2028.


ESOPS:
What happens on 1st Jan 2025 ?
Does the employee need to buy stock options worth ₹/$ 25,000 from his own pocket.
( I know they are given based on current valuation divided by number of shares plus some discount and FMV Stuff)


Main point here is , incase of ESOPS whatever is stated at a part of compensation, employee need to shell out of his pocket?

Is there anything I'm missing?

Does RSU also be considered while negotiating when switching.

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