My husband was offered a job with a tech company. They asked what he was looking for in total compensation and he gave a number. She said "that's a little low, I was thinking more like x". *Hangs head*
It's a good offer. Better, obviously, than he was hoping for. I just hate the feeling of being unable to negotiate and feeling like there was probably something on the table. Oh well, I can't really see a way of going back and asking for more now.
Tagging goldengirlz because I think you've mentioned waiting for RSUs in your current job. H has some that vest on a three year cycle at his current job but they are small amounts. They make up a pretty big chunk of income in the new offer. Anything in particular to be cognizant of besides the need to stay for them to vest.
Yeah, oops. If they hadn't gone over benefits at that point, then there's still potentially room for negotiation, either for money or vacation time. "Oh, I didn't realize that the health plan costs $x, with that info I'd ask for $y more", etc.
Re: RSUs - the main thing is sell them as soon as they vest! Or, if you're convinced that the company stock will continue to become more valuable, keep only the amount of stock for which you're willing to see it lose half or more of its value.
Post by goldengirlz on Apr 12, 2019 16:09:34 GMT -5
I don’t think you need to negotiate just to negotiate. Tech companies (or at least large tech companies) generally have a VERY good idea of what they need to pay to be competitive and most pay very well, as your H learned.
The big thing with RSUs is taxes. We get killed with taxes every year because they have their own tax rate which is well below our tax bracket. So while a certain number of shares are withheld by your employer on the date they vest, you will likely want to change your withholdings, especially for a two-income family.
If you decide not to sell your RSUs right away, you will also get hit with taxes on dividends. If you hold for a short period but sell within two years, you will pay short-term capital gains. But that’s true for any stock you hold.
I guess the only other thing to find out with RSUs is the vesting schedule. Often you have to wait 12 months before they kick in and then they vest quarterly. But if you’re thinking of them as part of your compensation, that’s important to clarify.
Actually, one more thing. And you might already know this, but just in case.
In the fine print somewhere, they should also tell you how they calculate the value of your RSUs.
So you might get an offer that includes, let’s say, $150k in RSUs. That’s probably not the number you’ll walk away with though. Because what they’ll then do is calculate the number of shares you’ll get based on something like the average trading price over the first full month after you join. So if that’s $100, you’ll get 1500 RSUs.
Then if your vesting schedule is 33% every 12 months, you’ll get 500 shares (less however many are withheld for taxes) on your vest date. So the value depends on what the stock market does; the total amount you pocket could be more or less than what they’re worth today — sometimes by a substantial margin.
This is a good point. My first tranche of RSU’s were granted based on the $30 share price at the time. They just vested at $9.50. Sad trombone.
Thanks all. I'll dig into the tax withholdings, that's a good suggestion that we probably would have thought of late in the year.
This company gives the # of stocks not a $ value, so that calculation is fairly straight forward at least!
The federal withholding is a flat 22% for amounts under $1 million. H and I have both have our withholdings set as “married but withhold at higher single rate” — we still owed $7500 this year but it was improvement over last year at least. One year I’m hoping to get it right!
Yeah, oops. If they hadn't gone over benefits at that point, then there's still potentially room for negotiation, either for money or vacation time. "Oh, I didn't realize that the health plan costs $x, with that info I'd ask for $y more", etc.
I was all "I told you not to give them a number!!" Dude should have spent a little more time lurking on money forums!
Thanks all. I'll dig into the tax withholdings, that's a good suggestion that we probably would have thought of late in the year.
This company gives the # of stocks not a $ value, so that calculation is fairly straight forward at least!
The federal withholding is a flat 22% for amounts under $1 million. H and I have both have our withholdings set as “married but withhold at higher single rate” — we still owed $7500 this year but it was improvement over last year at least. One year I’m hoping to get it right!
The RSUs vest on a varying schedule over 4 years, so I'm sure we will have some misses!