Levels.fyi reposted this
Front-loaded vesting schedules have been a new trend in tech. One of the latest companies to join is Pinterest with a unique 3 year vesting schedule: Year 1: 50% Year 2: 33% Year 3: 17% They join a slew of other companies who have been experimenting around this including Uber, Google, and more recently DoorDash. Google in particular has been trying this over a number of years introducing different variations of the schedule before settling on their 4 year schedule of 38-32-20-10. These grants are typically net lower than it used to be even if the first year total matches or exceeds what it was before. The supposed purpose of these schedules is to reduce immediate RSU burn for the company. Instead of locking in a single stock price for a whole 3-4 years, companies will issue refreshers and re-price in the latter years rewarding high performers and letting non-performers either "walk" or take a hit on their compensation. #salarytransparency
Dustin Diaz
4mo
Not sure why I’m only just hearing about this pattern. When did companies start experimenting (at the scale of Google) with vesting schedules? This is quite cool
Arash Nikzad
4mo
You should also compare these with Amazon haha! 5/15/40/40. Neither of these approaches would make people stay or leave.
Manisha Arora
4mo
Companies encouraging job hopping after 2-3 years 😄 You either get promoted (which depends on a ton of factors not all of which are in your control) or look for your next jump. Even with high performers, the upside for promo might be lesser as compared to a job hop, if companies continue to frontload. It's a great way to match a higher competing offer though 😀
This seems like an obvious win for job-hoppers. But I’d like to see how it plays out over the long term (including refreshers) for company lifers in this new model vs the more traditional model.
Zohaib Rattu ☃️
4mo
Zuhayeer Musa this is 🔥. Would love to have you on the pod!!!
Technical Recruiting | Founding TA | Recruiting Leader
4moZuhayeer Musa do you think this trend will continue? What do you see are the downsides to the company or the candidates?