What is the difference between RSUs and Stock Options in tech compensation?
Public tech companies (e.g., Google, Stripe, Apple) grant Restricted Stock Units (RSUs), which vest over a 3–4 year schedule and can be sold immediately for liquid cash. Early-stage startups grant Incentive Stock Options (ISOs) or Non-Qualified Stock Options (NSOs), where you must pay a "strike price" to purchase shares, hoping the company achieves an IPO or acquisition. When evaluating offers, calculate Total Compensation (TC) = Base Salary + (Annual RSU Value) + Target Annual Bonus.