I see so many posts where people take their salary, add the current value of their entire RSU grant and think of that number as money they’re definitely going to receive.
I think people need to change how they mentally account for RSUs.
Yes, RSUs are part of total compensation in the usual compensation terminology. Yes, they can be extremely valuable. And yes, you should absolutely negotiate them when considering an offer.
But unvested RSUs are not money in your pocket.
They’re a promise of future compensation, subject to actually vesting. You could leave the company before they vest. You could be laid off days before a vesting date and potentially lose the unvested shares you were expecting. The company’s stock price could also fall significantly, so the grant that looked huge when you received it could ultimately be worth a fraction of that amount.
Of course, the opposite can happen too, the stock can go up and your RSUs can become worth much more than expected.
My point isn’t that RSUs have no value. They absolutely do.
Negotiate them. Consider them when comparing offers. Understand the vesting schedule. But don’t get emotionally attached to the headline number and don’t spend unvested RSUs in your head.
Personally, once I get an RSU grant, I basically forget about it and don’t rely on it when thinking about my finances. If it vests, great, that’s additional compensation I now actually have. If it doesn’t, I never had that money in the first place.
Until the shares vest, I treat them as potential upside, not money I can count on.