I worked at Microsoft for several years. They did offer stock grants but it was never a significant portion of my pay. The actual value was significantly less than my annual bonus. Nowadays they don’t even do straight grants. They do vested grants. So the grant you get this year vests at 20% per year, meaning you have to work there 5 more years to get the full payout. The largest stock packages I was ever offered always came from small start-ups trying to tempt employees with the promise of a future IPO. Most of us learned after the early 2000s that this was almost never going to be the payout we hoped for. I haven’t see a stock offering in a job offer in almost 15 years.
Stock only becomes a significant portion of your pay at executive levels. Usually VP and above. That’s why these taxes don’t affect more than a tiny percentage of the population.
According to levels.fyi, Microsoft grants about 50-100k (25 percent of their pay?) in stock for their senior engineers each year. Amazon is closer to 200k (which makes up about 50 percent of their pay)
I guess you’re right in that it won’t really affect them, assuming the tax event occurs when the rsu gets vested and not at the sale.
It’d be more likely to affect folks who are in a pre-ipo company, gain a bunch of stock, and then sell it post-ipo. I know several folks at AirBnB who this would have impacted and several at stripe who this probably will impact.
I worked at Microsoft for several years. They did offer stock grants but it was never a significant portion of my pay. The actual value was significantly less than my annual bonus. Nowadays they don’t even do straight grants. They do vested grants. So the grant you get this year vests at 20% per year, meaning you have to work there 5 more years to get the full payout. The largest stock packages I was ever offered always came from small start-ups trying to tempt employees with the promise of a future IPO. Most of us learned after the early 2000s that this was almost never going to be the payout we hoped for. I haven’t see a stock offering in a job offer in almost 15 years.
Stock only becomes a significant portion of your pay at executive levels. Usually VP and above. That’s why these taxes don’t affect more than a tiny percentage of the population.
According to levels.fyi, Microsoft grants about 50-100k (25 percent of their pay?) in stock for their senior engineers each year. Amazon is closer to 200k (which makes up about 50 percent of their pay)
I guess you’re right in that it won’t really affect them, assuming the tax event occurs when the rsu gets vested and not at the sale.
It’d be more likely to affect folks who are in a pre-ipo company, gain a bunch of stock, and then sell it post-ipo. I know several folks at AirBnB who this would have impacted and several at stripe who this probably will impact.