Assume I get a US$4k grant with 1/4th vesting every year, there are two options:
1. I get RSUs worth US$1k in the first year, then the stock triples in price. I would then get US$3k worth of stock in the second year. I essentially get more money when my stock units vest.
2. I will always get the same dollar value of RSUs every year. This would mean I would get US$1k in stock every year, no matter how the stock performs.
Is 1. or 2. the “normal” method of granting stock? I just had two arguments with a friend and my dad, each completely convinced that 1 or 2 is the standard way stock grants work.
