How to Politely Ask For RSUs at a Public Company

During final interviews for a new job and at every review cycle thereafter, one topic likely to cause some anxiety is the topic of compensation, and in particular, asking an employer for more money. These discussions require some self-confidence and an employer who is willing to negotiate. If you have both, consider yourself lucky and congrats.

If your company is publicly traded, asking for RSUs is one of the easiest ways to add to your compensation and it feels much easier than asking for more cash. If you haven’t read our RSU Basics article, you’ll find it helpful. Understanding what RSUs are and a little about how they work will help give you more confidence when talking to the person in charge of making compensation decisions.

It would be great if every employer published the compensation structure and benefits of each position so people could better prepare for these difficult conversations. Unfortunately, most employers do not share that information. If you’re interested in learning about the benefits of compensation transparency, we’d suggest watching the TEDtalk “Why Do We Keep Our Salaries Secret?” by David Burkus.

If your company isn’t publicly traded, you can consider following the guidance in this article, but please be aware that it may take some time before you see the compensation you’ve requested roll in. If you negotiate for RSUs at a private company, you'll likely be asking for Double-Trigger RSUs.

Why is it Important to Ask for RSUs?

1. You’ll Make More Money - If you ask for RSUs and the company grants you some, it’s essentially giving you free money.

2. RSUs of a Public Company Will (Almost Always) Have Value - Whether the stock price goes up or down, if you’ve been granted RSUs, you’ll always be able to receive value once they vest and become yours (unless your company goes out of business).

3. RSUs Have Potential to Grow - Owning stock is a great way to increase your material net worth. Having RSUs that are in the process of vesting can lead to massive gains without you doing anything. Here’s an example:

   Say you work at ServiceNow and they grant you $10,000 of RSUs on 1/1/2020 with a four year vesting schedule. This grant would equate to 34 RSUs/future shares.

   $10k over a four year vesting schedule doesn’t seem that great, but fast forward to today, that $10k grant is now worth $23,970 and could potentially keep rising in value.

4. You Want to Feel Ownership in the Company You Work For - By receiving RSUs, you have an essentially free way to have a stake in how your company performs. The things you do at work can potentially improve the stock price, and as a result, increase how much your RSUs are worth.

5. RSUs Give You Bargaining Power - If you quit before RSUs vest, you typically lose them. However, if you are interviewing with other employers before quitting, you can use the RSUs that you currently have to ask for RSUs at your next company. If they don’t offer RSUs, then you may be able to negotiate your way into a cash bonus.

6. Once You Start Getting RSUs, You Won’t Stop - Once you’re an employee who receives RSUs annually, you’ll typically keep receiving them. 

7. RSUs Can Be a HUGE Part of Your Compensation - A lot of companies will cap their max salary for their employees, regardless of their leadership role. Amazon is well-known for this as they cap employee salaries at $160k, but that is just cash compensation. There are employees/leaders that receive hundreds of thousands of dollars worth of RSUs annually, in addition to their salaries.

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Why Would a Company Want Me to Have RSUs?

1. They Want You to Feel What Ownership Is Like

   You can feel like a part of a company without owning stock, but that’s just a feeling. If you own stock in a company, you’re a literal owner. Companies want their employees to feel a true sense of ownership and the best way to do that is provide a way for you to obtain company stock.

2. They Want to Retain You

   Companies usually want to retain the talent they hire. Equity compensation is a proven way to keep employees onboard. According to a ComputerShare study, employees receiving equity compensation have less unplanned absences, are 7% less likely to look for a new job, and as equity compensation increases, so do those data points.

3. They Want to Keep You Happy

   According to that same ComputerShare study, companies that receive equity are 10% more likely to be satisfied at work, 7% more likely to say their employer is a “Good Place to Work,” and 5% more likely to say they are paid fairly.

4. RSUs Are Easy on Cash Flow

   Paying outright cash to employees can be hard on company cash flow. RSUs pull shares from a pool that has already been approved. It’s much harder to ask for a $20k cash bonus than it would be to ask for a $20k bonus in the form of RSUs.

How to Ask - With Questions You Can Use!

Before you ask your employer for RSUs, make sure you understand the basics of RSUs. It will help you prepare for follow-up questions with the recruiter or HR person.

The best two times to ask for RSUs are (1) when you’re starting a new job and (2) when you’re receiving a promotion. Here are some examples of what you can say during your negotiation for RSUs.

• “I’m really excited to start working here at [Name of Company] and I want to feel even more invested in it right out of the gate. Would [Name of Company] be willing to give me RSUs as part of my offer?”

• “I’m really excited about my new role and the growth opportunity it’s going to present. I’m curious, would it be possible for me to receive RSUs as part of this promotion?”

• “I’m happy with the compensation package and really look forward to participating in the ESPP. I’m curious, would [Name of Company] be willing to offer RSUs as well? Obviously, I would love annual grants, but even a one-time grant would get me even more fired up about working for [Name of Company].”

• “I’m happy with the compensation package you’ve presented and have a question about my transition to [Name of Company]. I currently have $X of RSUs with my current company. Would [Name of Company] be willing to offer something since I will lose those RSUs when I join?

• In the past I’ve found my equity compensation to be the most exciting piece of my compensation. Would [Name of Company] be willing to incorporate annual grants of RSUs in addition to my base salary?

Feel free to rephrase any of the above in order to make it personal to you. Depending on your situation, you can push harder or softer, but asking for RSUs should be part of any compensation discussion and are well-worth the effort. It never hurts to ask in a friendly way. To quote Nora Roberts,  “If you don’t ask, the answer is always no.” 

To better prepare for your compensation discussions, we recommend reading the book “Getting to Yes" by Fisher & Ury (Harvard Negotiation Project) which describes negotiating strategies you can use to improve your chances of success. And because research indicates that negotiating may present specific challenges for women, we also recommend the book “Women Don’t Ask” by Babcock & Laschever.

We also recently published another article titled, “5 Tips For Negotiating RSUs” which should help give you some additional firepower. We recently finished the book, “Never Split the Difference” by Chris Voss and we think it’s right up there with “Getting to Yes.”