I usually prefer to have a good fixed component as RSUs/ESOPs tend to loose if you don’t complete the tenure in an org. And generally folks tend to switch in 2 years or so which results in loss of remaining unvested RSUs/ESOPs. 
  
 Your fixed component has a limit wrt YOE and designation so usually it increases.

@JustAGuy what are the general Fixed component limits wrt different YOE?

Data engineer

Check this https://www.levels.fyi/ for insights

Software Engineer

1. What are the pros and cons of Fixed Salary and RSUs/ESOPs? 2. Do companies stop increasing fixed component after certain number of years of experience?

Welcome to Personal Finance's Private Community

1. What are the pros and cons of Fixed Salary and RSUs/ESOPs?
2. Do companies stop increasing fixed component after certain number of years of experience?

Pros and Cons of Fixed Salary vs RSUs/ESOPs

Pros and Cons of Fixed Salary vs RSUs/ESOPs- Grapevine

Welcome to Indian Startups's Private Community

What’s the advantage of RSUs over ESOPs? Is it RSU that’s more lucrative as I always had ESOPs that didn’t materialise into anything :-(.

ESOPs vs RSUs

Program Manager

Consider this scenario:

A well established publicly trading company is giving you $45000 (120 units) worth of RSUs, with vesting schedule of 4 years. The work culture seems stressful (asked from ex employees) and they have a 4 day work from office where they track your badge attendence. 

And a Series B startup is giving you $45000 (9000 units) worth of ESOPs with vesting schedule of 4 years. It has scope to go for Series C and D fundings and even IPO in 4-5 years. The company is flexible in remote/office setting and has some perks like: once a quarter a selected Monday will be holiday, yearly offsite to exotic places.

Which one would you prefer RSUs or ESOPs? and why? Kindly explain why your preferences.

ESOPs or RSUs? Which would you choose?

Analyst

What are the ways to reduce the stock price of a private company before it goes for IPO?

Example:

Let's say the stock price of a private company is Rs 8000 with a face value of Rs 10. So one way here is to split the stock in a 1:10 ratio making the stock price Rs 800 which might make it easier for growth of the company

Another way I'm aware is to issue bonus shares to the employees which would reduce the stock price

What other ways are there?

I'm looking for answers where there are benefits to employees and where there aren't

Private company valuations

Growth Manager

Welcome to Software Engineers's Private Community

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?

RSU v/s ESOPS

Software Developer

Hi, I am an incoming Fresher @ SF. I wanted to know how do ESOPs work. Like in the overall CTC they include them (about 20L worth) but then they say it's vested over four years. Wouldn't the CTC then actually be a quarter of what they include? Like only 5L?

Also after the vesting period, do the companies stop giving ESOPs? Then does our CTC basically become Base salary + Bonuses?

ESOPs! How do they work?

Please share the knowledge you've about these two!

Product Owner

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

Let’s say current salary is : Fixed + Variable + ESOPs (over 4 years)

For 4 years you get total amount of ESOPs promised.

Now once the 4 years are over, do you renegotiate your salary with your company to ask for additional ESOPs yearly or like just continue with Fixed + Variable from year 4 onwards ?

What happens to your compensation once the ESOPs vesting period is over ?

Corporate Strategist

Welcome to Business Roles's Private Community

I have 6 years experience. My current base/fixed is 60 LPA. (I also got a 5 lakh bonus and 5 lakh of my ESOPs vested this year making my total vested about 30 lakh. So the total comp is 70). 

I'm being offered a senior engineer position in an early stage startup (as part of the founding engineer team). They haven't given an offer yet.

Being early stage, the emphasis will most likely be on ESOPs. How do I evaluate this and set my expectations? (If I were to switch to a mature company, I believe the hikes usually are between 15-20%? How does this work for early stage startups?)

Salary expectation at early stage startup

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!

Product Manager

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.

I joined my present company a year back, my peer has been here for 5 years and holds RSU's amounting to 1.5 crores (Share value got 4x in 5 years).

How many of you have generated substantial wealth through ESOP/RSU?

Chartered Accountant

How many real startup or companies were able to convert esops to RSU or real money? Can anyone share their success stories for wealth creation.

Esops to RSU

Lawyer

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

Can I ask for ESOP , if get placed in MNC ?

ESOP

I recently interviewed at a large company. I applied by sending my resume to someone in my network who works there and they forwarded the resume to HR. After that I got a call from HR and they asked for my expected salary among other things to which I answered that I want a 40% hike. I cleared all technical interviews and after that I got a mail saying that they would like to offer me a full time role and asked some of my documents to prepare an offer. I was curious about them asking for documents without having an HR round first so I called the HR and asked some details about the job and she ensured that they can give me a 40% hike on base but not on TC so I assumed they will hike my base and keep the other components in a similar range to what I currently have. I send the documents and on the next day I get a call from HR asking about my expected compensation again, I then ask about their salary structure and they explain that it's all fixed. I was confused on what number to give them so I said that I wanted a 40% hike but since my TC consists of variable components and theirs don't, I would like to know what is the maximum salary they could give me to which the HR replied that they will let me know in a while. It's been more than 24 hours and I haven't heard back. I don't want to call the HR because that might make me look desperate and give them a reason to lowball me but I'm not sure what to do and am even more confused about what kind of process is being followed at this company.

What kind of a hiring process is this? Need advice

Started working in 2017 (Graduation: Tier 2 College)  in hand salary: 28K per Month. Worked for 2.5yrs, had big dreams, didn’t knew what to do, how do I 10x my salary, saw my manager 40yrs old earning 25LPA in the same company. Realised I don’t want to do this for the next 20yrs and the reach at 25LPA. Started preparing for UPSC (wanted to make it big) realised within 6 months, this is not my cup of tea, appeared for MBA entrance, cleared the exam joined Tier 1 MBA, post MBA: 25LPA + XX Esops in next two years at 1.2Cr CTC inc ESOPs. 

Before 2030 plan to achieve FIRE with 8Cr networth. By 2040 make it 100Cr and retire. Chill at beach with beer in hand and two other friends. 

What’s your story, do share those goldmine inspirational stories!!

Story of Middle Class guy from 3.5LPA CTC to 1.2Cr CTC (46Base + 72Esops) in 4 yrs

Are you considering 72L esops of razorpay as your own networth? 🤔🤔

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