First Milestone Reached, 26M (1 crore Networth)

[billyyank]

@tours Your company does provide RSU's, just that you don't have it

 

[tours]

@billyyank

 

[kayelgee]

@dmscotland What are RSUs could someone please explain? Thanks

 

[renette]

@kayelgee RSU are Restriced Stock Units, Some companies include a part of their shares in the total compensation of an employee, basically, they pay a part of your CTC as a form of their company's shares. Why restricted, you ask? Most companies assign the stock units to employees, but they can't immediately cash it in or make moves with it, they have a certain loyalty period after which you can deal with the said shares. For most companies it's a loyalty period of 2-4 years.

 

[mayfrancis]

@renette I have some questions, please help me out here, I am just 2 months into work exp after clg:

- do I got to be employed in that company itself until the loyalty period to cash it? or does this depend on the company

- does this apply to companies or "startups" that doesnt have their stocks listed on the market yet ?

Thanks in advance

 

[renette]

@mayfrancis see I'm no expert myself but I'll tell you what I know myself alright,

Firstly, Yes, You'll have to be employed at the same organisation till you complete the vesting(loyalty) period to be awarded with the RSUs.

Not exactly, Yes unlisted companies/startups also offer RSUs and yes you can sell them after the vesting period, But a public/listed company will give you immediate liquidity after the vesting period, Whereas through a private/unlisted company, you will have to find a buyer for the shares yourself(many companies won't allow) or wait for the company get listed or acquired.

 

[br4nd0n]

@renette Are RSU's and ESOP's the same thing? If not, how do they differ?

 

[renette]

@br4nd0n i won't be able to explain the entire thing properly in a reddit comment. So, here's a link to an article which i think is concise and would be helpful.

 

[br4nd0n]

@renette Thanks. Will go through the link.

 

[coleenv]

@mayfrancis As far as I know. You have to be employed until the locked period ends to cash them.

 

[kayelgee]

@renette Thanks bro

 

[howdydave]

@dmscotland This is the way

 

[lion2808]

@dmscotland Are the RSUs phantom units? Is the company listed in the exchange?

 

[dmscotland]

@lion2808 Company’s a part of S&P500 and Nasdaq100. Listed for 40 years.

 

[michi1966]

@dmscotland Which index fund do you invest in?

 

[mayfrancis]

@dmscotland what is you work though ? finance or business or engineering ?

 

[dmscotland]

@mayfrancis Dev.

 

[mayfrancis]

@dmscotland what do you work with currently then ? data enginnering or backend dev etc etc

 

[beto2010]

@geminikid I'm guessing he's a software engineer at some faang level firm which pays well enough

 

[bflem1986]

@dmscotland Me at the age of 26 with no job and broke reading this lmao
Congrats OP