Higher salary vs better stock options/RSU's

[darthsidious]

I'm currently deciding between two offers (I'd already posted a thread asking about living in irvine vs austin). I got my second offer today, and it has left me in a bit of a quandary. My offer from California pays less, but has good stock options/RSU's with it. But I'm only going to see most of it if I stay there for a significant period of time (The options/RSU's vest over 4 years, and more are issued every year as a bonus, which means that I make significant money if I stay there for 4 + years). The company in Austin pays a tad more, and gives me a nice sign on bonus (plus the possibility of yearly bonuses). But I get no stock, till I reach a higher grade (which typically happens in 3 years or so). Both base salaries are more than enough for me to live on(80k plus).

I guess it's hard to make a determination without spelling out the offers/companies in detail (which I'm reluctant to do for obvious reasons in a public form). With some reasonable assumptions, the expected value of the total offer from the company in california is higher, but not by much. But it mostly comes down to valuating options for a fairly mature (but still growing) company. Is there some sort of standard way to evaluate this? If you were in my position, what would you do? If you need any more information, feel free to ask, and if I feel comfortable, I'll share it (or PM you with it). Let's take location out of the picture (as the other thread I've made deals with it - here's a link to it - Old Thread).

TIA,

 

[Acanthus]

If the company with better options historically is a good place to work, id go with the options.

Id probably weigh location more heavily than options/pay if they were close.

 

[Capt Caveman]

I'd weigh the job, opportunity for personal growth, location, company growth and lastly pay.

 

[mugs]

Originally posted by: Acanthus
Id probably weigh location more heavily than options/pay if they were close.

:thumbsup:

 

[darthsidious]

Originally posted by: Capt Caveman
I'd weigh the job, opportunity for personal growth, location, company growth and lastly pay.

Essentially it's the choice between working in a small division that produced some stellar knockout products in the cellphone transceiver space before being acquired by a large company(in austin), vs working in a company that began as a startup 15 years ago, and has recorded solid growth since then to reach maturity(in cali). Even though the first company is larger, our division is tightly knit, and continues to focus on the same product space, so it feels like working for a 100 person company.

As for personal growth, it's hard to say. I'm fairly young (22), and when I join, I'll be a lot younger than most people in both companies. The group in austin is fairly young, and expanding rapidly, which means there should be good opportunities for me if I do well. OTOH, company-wide, I expect the company in California to do better than the company in Austin. All these factors have served to make my decision harder.

 

[MasterOfKtulu109]

80k in austin will go a lot farther than irvine, won't it? im not sure exactly, but im guessing 80k in california is equivalent to about 50k in texas, as far as expenses go.

 

[ultimatebob]

Originally posted by: MasterOfKtulu109
80k in austin will go a lot farther than irvine, won't it? im not sure exactly, but im guessing 80k in california is equivalent to about 50k in texas, as far as expenses go.

Yeah, you really need to factor in cost of living here. Hell... even a 2 bedroom condo in Irvine will set you back $450,000, while you can get a McMansion in Austin for that kind of money!

Also, keep in mind that the stock options are worthless unless the company continues to do well and you're planning on sticking around for awhile.

 

[RaistlinZ]

I'd go with the one in Austin. The sign on bonus is a huge plus, and you said you'd have to wait at least 4+ years for the stock options to really kick in on the Cali job. Factor in cost of living and you'd be living like a king in Texas.