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Ask HN: How to determine RSU value for offer for non-public company?

by b20000 on 9/20/24, 6:41 PM with 5 comments

I have been offered a certain number of RSUs as part of a compensation package and need to determine what the realistic value is of these RSUs.

The company is not public yet but has been around for about 10 years and is pretty well known.

When I asked about the value of the RSUs they refused to share any key numbers such as outstanding shares, valuation etc.

Based on public info the valuation is in the single digit billions.

How does one come up with a realistic pricing range of the RSUs when evaluating an offer?

  • by curious_curios on 9/20/24, 6:50 PM

    They really should have no problem with providing a recent valuation. You should say that you’re trying to plan out your tax liability, because depending on your jurisdiction it’s going to be taxed. From that standpoint if it’s significant and there’s no liquidity it’s actually a liability.

  • by codingdave on 9/20/24, 6:52 PM

    Zero. If they aren't willing to tell you what the value is, then they are hiding something, so call it worthless. Even if you disagree, you cannot get any value from them if the company is private, unless there is a liquidity event. So... Zero.

  • by gwbas1c on 9/20/24, 7:00 PM

    IMO: Unless you really, really, really want the job, it's time to walk away.

    FWIW: Sometimes companies need to fill open jobs to meet artificial metrics. IE, they want to look like they're growing, so they over-hire. Or, someone gets promoted to a lofty title and now needs to hire so they have direct reports to justify the title. Use care, because if a company is filling seats with warm bodies, you will have to work with those warm bodies.