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Is the amount of RSU's I've received worth it?
So, I'm a bit confused about my situation. This is my first time dealing with stocks, so please bear with me. I've just recently received the grant of restricted stock units at a startup I am working at. It is for 200 units that vests in one year.
I'm currently receiving a reduced monthly payment in lieu of equity. My pay for the last year has been about $20,000. I just received a raise and should I stay during the entire duration of the vesting period, I would receive $30,000 in cash payment for my consulting services and the 200 units of restricted stock.
What I am worried about is whether the RSU, even if they have value (they are currently worthless as the company is not even public yet) is even worth the time getting, as opposed to working at a company that can pay market rate.
As I understand it, once the vesting period is over, I receive the 200 units, then for example sake lets say they go public and a share is valued at a price of $99 (extremely unlikely, but for example). Doesn't that mean that should I sell it, I gain 200 * $99 = $19800?
If I were paid market rate and worked at a company for one year, it might be around $50k or $60K. For two years I would make $110,000+.
I was expecting the stock value to be worth at least $300K-$400K, based on the talks I've had with my boss before I received the legal documents concerning the RSUs. Boss did not really explain very well even after asking for clarification (honestly, I don't think he even understood that well either), and just said that I would be well compensated, and at one point after saying I was confused by the legal language that I should just have trust!
Am I missing something? Could it be that I'm misunderstanding RSU's and that they have more value than the current stock price after the vesting period?
-Signed,
Young, naive, and confused.
I'm currently receiving a reduced monthly payment in lieu of equity. My pay for the last year has been about $20,000. I just received a raise and should I stay during the entire duration of the vesting period, I would receive $30,000 in cash payment for my consulting services and the 200 units of restricted stock.
What I am worried about is whether the RSU, even if they have value (they are currently worthless as the company is not even public yet) is even worth the time getting, as opposed to working at a company that can pay market rate.
As I understand it, once the vesting period is over, I receive the 200 units, then for example sake lets say they go public and a share is valued at a price of $99 (extremely unlikely, but for example). Doesn't that mean that should I sell it, I gain 200 * $99 = $19800?
If I were paid market rate and worked at a company for one year, it might be around $50k or $60K. For two years I would make $110,000+.
I was expecting the stock value to be worth at least $300K-$400K, based on the talks I've had with my boss before I received the legal documents concerning the RSUs. Boss did not really explain very well even after asking for clarification (honestly, I don't think he even understood that well either), and just said that I would be well compensated, and at one point after saying I was confused by the legal language that I should just have trust!
Am I missing something? Could it be that I'm misunderstanding RSU's and that they have more value than the current stock price after the vesting period?
-Signed,
Young, naive, and confused.
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