I work for a well-known tech company that includes RSUs as a pretty big chunk of compensation. I have absolutely no perspective on the level of the additional grants that come attached to the annual reviews, but I was under the impression it was maybe a $5–8k cost-of-living kind of deal. Now I'm very intrigued...
It really depends. The numbers aren't huge life-changing at the beginning, but they add up over time and if you're really strong^H^H^H^H^Hlucky^H^H^H^H^Hshrewd and get promoted quickly, the numbers can get pretty large. The numbers below are hypotheticals but not too far off from people I know doing the BigTechCo circuit. Some do better, some do worse.
As a new grad you might see $5-10k in extra annual compensation coming from vesting RSUs (i.e. in addition to your salary and cash bonus). But RSU grants start to stack. Say your grants start vesting after 1 year at 25% per year. Year by year you might see:
Year 1: $40k/4 = $10k vest, new $10k grant (also vesting over 4 years)
Year 2: $40k/4 + $10k/4 = $12.5k vest, new $15k grant
Year 3: $40k/4 + $10k/4 + $15k/4 = $16.25k vest, new $25k grant
Year 4: $40k/4 + $10k/4 + $15k/4 + $25k/4 = $22.5k vest, new $35k grant
Year 5: $10k/4 + $15k/4 + $25k/4 + $35k/4 = $21k vest, new $40k grant
At year 5 you've seen $82.25k worth of stock vest (assuming a flat share price). Which leaves you with $82.75k left to vest.
Now you're tired of working at BigTechCo #1 and get an offer from their competitor, BigTechCo #2. You know how this works, so you tell them you've got $83k in RSUs. To make it worth your while, they offer you $160k of their own RSUs vesting on a similar schedule. You're an experienced, senior hire at this point so your RSU grants are larger, but maybe because you're a new hire who doesn't know the ropes your first couple of years at BigTechCo #2 show respectable but not explosive growth:
Year 6: $160k/4 = $40k vest, new $30k grant
Year 7: $160k/4 + $30k/4 = $47.5k vest, new $50k grant
Then you interview again and move to BigTechCo #3. Or back to BigTechCo #1. Or you tell BigTechCo #2 you're out and they give you a retention offer. Or you get a big promotion. Either way, the RSU grants add up. All the while you've been pulling in a respectable base salary, raises, and cash bonuses. And maybe, if you're lucky, your company's stock price has gone up too.
Or you realize your gross income of $200-300k in the Bay Area earns you the ability to buy property, which means you pick 2-3 of the following outcomes: [1] small and/or shitty house [2] 2-3 hour daily commute [3] overextended and house poor. So you move to the midwest and buy a palace.
Wow, you put a ton of effort into this, thanks. It's basic math but it really helped to see the fractions laid out like that. Now, to get good at my job and buy a palace...
I guess it also helps to become irreplaceable and/or indispensable at something.
There are employees at Google with hundred million dollar stock packages, but those obviously aren't bottom-of-the-org-chart drones.
You can either work hard for a lifetime single-company career and get there in 10-30 years, or you can try to hack your way upwards with startups and get acquired by the same company. (or, the even more daring option—create something of value as a startup and get your own team to help grow it.)
I think it would be fun to be the type of person who throws startup-centric, hail-mary passes with my career, but now that I've actually gotten myself onto a track that I love, I've very quickly turned into the quarterback calling the end-around and screen-pass every play. I might win less, but I'm less likely to screw something up too badly.