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.
Depends on two things:
If you have kids and have bills to pay, go for liquidity - join the public company.
If the Series B company has a high chance of reaching Series D or E AND you have a chance of growing in the org, then go for Series B. You can gauge chances of success by looking at the Startup's market and the Founder's background.
You asked for RSUs or ESOPs but described a lot more points to make decision on. I’ll go with the Series B startup given ur points.
My profile: EX. Founder turned Product+ strategy person YOE: 5+ ESOPs: 80 lakhs Cliff: 1 year Vesting period: 48 months
I am still thinking after how many years it will be valuable given the liquidity is very rare for ESOPs. Any thoughts?
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:
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