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Comment by zck | Hacker News Reader

But with RSUs, you lock the purchase price in at the time of hire. So if you are granted a four-year grant in 2022, you get RSUs of stock in 2026, but at the 2022 price. So if you're granted $1k/month of RSUs, and the company stock doubles in that four years, each month you get $2k worth of stock.

Your employer won't do that with salary.

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As you say your getting a much better tax advantage and can use capital Gains to reduce the tax rate.

Though compared to the US the UK has much better treatment of "employee" share schemes. The most common Sharesave is effectively a risk free investment at a 20% discount.

I am surprised if the Google union hasn't got fairer treatment of stock options on its agenda and I do mean for all employees.

> As you say your getting a much better tax advantage and can use capital Gains to reduce the tax rate.

This isn't true. RSUs are taxed as income at vest time, so if you're granted 100K in RSUs in 2020, and they vest in 2023, come 2023, if the stock has increased 25% to 125K, you'll be taxed on 125K of income. No capital gains involved anywhere.

Ah sorry was looking with a UK perspective - the USA really doesn't want the little people accumulating capital does it.

https://frazerjames.co.uk/rsus-a-tech-employees-guide/ seems to suggest that it works the same way in the UK. Are you perhaps confusing RSUs with options?

It's actually even worse in the UK. If you get a grant in the UK, you still owe taxes when it vests, even if you've left the UK years ago.

HMRC Approved schemes only from Share Save through EMI (the gold standard)

If you get RSU's in an American parent company your screwed its just income there's some calculations on the relevant redit r/UKPersonalFinance - basically its treated income and you also don't get the legal protections

as the site says "The UK tax treatment for RSUs is similar to how your salary is taxed."

The example shown on the site you quote has a 56.53% effective rate - don't forget you pay NI as well

As I said very poor I paid zero tax on my two share saves and my current EMI is at the 10% rate.

Update the 56.5% rate is after you put 20k into pension the actual rate is just under 70%

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