This guide leaves out something extremely important that just fucked over a friend of mine: double-trigger RSUs. My friend thought he was getting a certain amount of stock annually, but in fact he only got it if he was still employed there when the company went public. So after six years they fired him right before going public a month later, and he got nothing. And in order to get any severance, he had to sign an agreement giving up any right to pursue any legal claims against them. I didn't even believe this was possible at first. Almost no startup equity guides mention this. Read your contracts very carefully, people!
> If you have restricted stock units (RSUs), everything is pretty straightforward. You do not have to purchase RSUs. You just get them at no cost as they vest. Most private companies do something called double-trigger vesting. That just means you are also not taxed as they vest. Instead, you get taxed for your RSUs at some second trigger date, which is usually set to be the date of the future big liquidity event (at ordinary income). One big drawback with double-trigger RSUs is that you are not really able to sell them in tender offers or other pre-going-public liquidity events.
Doesn't exactly mention the important part, that you don't necessarily get anything, does it?
