Hypothetically - 10-12% jump on In-hand component, swapping RSUs with almost equal INR worth ESOPs??

Product Manager

Hardware Engineer

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

Welcome to Indian Startups's Private Community

Transition from RSU to ESOP comp!

Transition from RSU to ESOP comp!- Grapevine

Welcome to Personal Finance's Private Community

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?

Software Engineer

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

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

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

Eg. Seed -> Series A. What percentage of your CTC should be ESOPs across stages?

How much ESOPs do you ask for when moving to a company at a different stage?

Welcome to Software Engineers's Private Community

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

Software Developer

I am a fresher software engineer. I was an intern at a series A startup and they have offered me a pre-placement offer.

This is the breakup(Yearly):

Basic - 6L
HRA - 2.4L
Special allowance - 1.9L
Food allowance - 26.4K
Professional pursuit - 60K
Internet - 12K
Half yearly bonus - 50K

PF contribution - 2K

Total CTC - 12.5L

Apart from this, I've also been allocated 1000 ESOPs

Is there any scope of negotiation here? If yes, how do I go about it? 

Any advice/guidance would be very helpful!

Shall I negotiate in this offer?

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.

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

I’ve been out of this game for a while so pardon my ignorance. What are you folks asking for as stock compensation these days?

My understanding is that if you’re being paid ₹100 as base pay, a ₹10-20 variable and ₹100 as ESOPs that vest over 4-5 years in equal parts is fair game. And you should continue to get at least ₹100 fresh grants each year if you’re a high performer. 

How did it go for your negotiation? 

And how did you ensure you actually get value for ESOPS? 

Most startup ESOPs are 100% bullshit and you may not get a rupee even after a decade of working.

How should you negotiate stock compensation ?

Corporate Strategist

Hi, I got an offer from a Series B startup and they are giving me 3000 shares of ESOPs vested over 4 years. Right now the value of each shares are worth $5 and has a potential to grow after new funding rounds this year. I feel 3000 shares is less and want to negotiate for more. 

In your experience can anyone tell me how much ESOPs (shares) have you received from new startups? And was it benefecial in the long run?

Any input is appreciated.

How much ESOPs should I ask from a Series B startup?

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

ESOP

I’m currently interviewing with cars 24 and expecting an offer from them by this week

The rough numbers given to me are 
base: mid 40s and 10% variable bonus (overall comes around near 50LPA)
(There is no other component apart from these)

I need help with the following:

1. HR told me they don’t give ESOPs etc. I just wanted to confirm if I should negotiate on this because on Leetcode I’m seeing they offered joining bonus as well as ESOPs.
2. If anyone can give me details around any recent offer from them and the components they got in the offer, it would really help


My recent TC: 36L Base
25L esops per year
Total workEx: 4 yrs
Education: Tier 1 CSE

So this is like taking a pay cut in terms of overall TC 

(Catch is I was laid off and I need this offer for the worst case scenario)

Cars24 Offer Review and Help

[Need help] I have 3 lakhs of Pine Labs ESOPs each year. Got this news yesterday where Neuberger berman has reduced Pine Labs valuation by 39%. Does this mean when I try to cash out 3 lakh ESOP, the actual value would be 39% lesser?

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

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

Welcome to Office Gossip's Private Community

Hello all! 
I am working as HR Head in a growth stage startup in Bangalore. So many people here talk about compensation, culture, growth etc. Happy to answer questions related to HR/Culture/Startups.

Transition from RSU to ESOP comp!

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