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Comment by daggerdrone | Hacker News Reader

Sorry but that's not how it works. $500k/year would mean roughly $250k base+bonus and $1 million of stocks vested over four years. And at most companies, the vesting starts after 1 year. So at the end of year one, you would have made $500k in base+bonus+stocks. And after that you would usually get the stocks every quarter so $62.5k worth of stocks every quarter. I am not sure where is your figure of 200-250k Total Comp coming from?

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When someone says $500k/year, they usually mean a package like $150k base + $350k stocks with yearly grants.

For the standard 4-year vesting schedule, and assuming a new $350k grant every year, this means actual earnings are:

   Year 1: $150k + $0        $150k
   Year 2: $150k + $87.5k    $237.5k
   Year 3: $150k + $87.5k*2  $325k
   Year 4: $150k + $87.5k*3  $412k

If you leave here, at year 4, and lose all unvested options (expected), your actual average was $281k/year.

Only by year 5 you'll finally actually earn the $500k/year, and the vesting schedule has such an impact on the early earnings that even after a decade, your yearly average is still $400k.

Not to forget taxes. So the idea to "save for one year then take 6 years off" is kinda off the menu unless they've been at the company for a long, long time, or are willing to spend those 6 years living in Thailand.

$500K / year at year four is something entirely different than $500K / year. And that's what the OP said they were making.

How often do people get one large grant upfront, vs yearly refreshers? I was under the impression the latter is the norm.

There are plenty of people making $500K total comp annually right here on HN.

Yearly refreshers come on top of the initial large grant - I've never seen a place that had yearly refreshers without an initial grant.

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