I have around 2 years of experience.
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.
RSUs are stock units and not stocks. Your company will buy back those shares once they’re vested and pay you equivalent money as your salary.
But the price of the stock depends on the valuation of the company at the time when you sell the stocks back to the company. If you think the valuation can dip, you’ll lose money.
A secondary market may not be the right place to sell. What is the valuation that the employer is telling you?
If the cost of 50 RSU is 16L and is vested across 4 years, you’ll make 4L per year. If the company’s valuation doubles, you’ll make 8L per year.
If you switch from this company after 1 year with a 30% hike on cash component, you’ll make an extra 5.4L. So, I wouldn’t put a lot of weight on RSU to evaluate the offer.
So I am getting 3060 RSUs. 1 stock value is 20$ according to current valuation so that is equivalent to 50L which is vested over 4 years. Equivalent CTC comes out to be 33-34L. The recruiter told me that the company plans to go for an IPO within 2 years so I have high hopes on that but what is concerning to me is the value of stocks in secondary market.
What if I want to switch after 2-3 years and the company has still not gone public? I would probably have to sell off my RSUs at 50%. One thing I am also curious about is, do I get to keep the RSUs that are vested to me even after I leave the company?
What do you think?
The value of unlisted stocks can only be determined years down the line when (if) a listing happens.
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 an...
I’ve got an offer from company named Yubi(previously CardAvenue) with the valuation of around $1.5B. They claims that company will be going public in next 1.5 Yrs max. I'm not quite sure how true it is.
Any insights about its work cult...
Staff software engineer @ saas company with $200mn+ARR. $1.2 bn valuation (undervalued but a good thing for me)
Cash component - 65lac (honestly I'm happy with it and not looking to get it improved)
ESOPs - this is a bit tricky as I'm...
