PM RSU Vesting Negotiation Script: Template for FAANG Offers

What is a Typical FAANG PM RSU Vesting Schedule?

A typical FAANG PM RSU vesting schedule is 4 years, with 25% vested after 1 year, and then 6.25% vested every quarter thereafter.

In a recent debrief, a hiring manager at Google mentioned that their standard vesting schedule for PMs is 4 years, with a 1-year cliff. This means that if you join Google as a PM, you can expect to have 25% of your RSUs vested after the first year, and then 6.25% every quarter for the next 3 years.

Not a standard 3-year vesting schedule, but a 4-year schedule with a 1-year cliff.

How Do I Evaluate My RSU Vesting Offer as a PM?

To evaluate your RSU vesting offer as a PM, calculate the total value of your RSUs based on the company’s current stock price, and then determine the vesting schedule.

For example, if you’re offered 1,000 RSUs with a 4-year vesting schedule and a current stock price of $150, you can expect to receive $150,000 in RSUs over 4 years, assuming the stock price remains constant.

Not just about the total number of RSUs, but also about the vesting schedule and stock price.

Can I Negotiate My RSU Vesting Schedule as a PM Candidate?

Yes, you can negotiate your RSU vesting schedule as a PM candidate, but it requires a solid understanding of the company’s policies and industry standards.

In a conversation with a Facebook PM hiring manager, they mentioned that they are open to negotiating RSU vesting schedules on a case-by-case basis, especially for candidates with exceptional experience.

Not a straightforward yes or no, but a nuanced discussion.

What is a Reasonable RSU Vesting Negotiation Script for FAANG Offers?

A reasonable RSU vesting negotiation script for FAANG offers involves expressing your enthusiasm for the role, highlighting your relevant experience, and politely inquiring about potential flexibility in the vesting schedule.

Here’s an example script: “I’m excited about the opportunity to join [Company] as a PM and contribute to the team’s success. Given my [X years] of experience in product management, I was wondering if there’s any flexibility in the RSU vesting schedule. I’ve researched that [similar company] offers a slightly more aggressive vesting schedule, and I was hoping we could discuss potential options.”

Not a pushy or aggressive tone, but a collaborative and informed discussion.

Preparation Checklist

To prepare for negotiating your RSU vesting schedule,

• Research the company’s standard vesting schedule and industry benchmarks using resources like Levels.fyi and Glassdoor.
• Work through a structured preparation system (the PM Interview Playbook covers evaluating equity compensation with real debrief examples).
• Review your offer package carefully and calculate the total value of your RSUs.
• Prepare a clear and concise script that highlights your value proposition and expresses your enthusiasm for the role.

Mistakes to Avoid

BAD: Not researching the company’s standard vesting schedule and industry benchmarks. GOOD: Understanding the company’s policies and industry standards to make informed negotiations.

BAD: Being pushy or aggressive in your negotiation approach. GOOD: Being polite, informed, and collaborative in your discussion.

BAD: Focusing solely on the total number of RSUs without considering the vesting schedule. GOOD: Evaluating the entire compensation package, including salary, bonus, and equity.

FAQ

Q: What is the typical vesting schedule for PMs at FAANG companies?

A: The typical vesting schedule for PMs at FAANG companies is 4 years, with 25% vested after 1 year, and then 6.25% vested every quarter thereafter.

Q: Can I negotiate my RSU vesting schedule as a PM candidate?

A: Yes, you can negotiate your RSU vesting schedule as a PM candidate, but it requires a solid understanding of the company’s policies and industry standards.

Q: How do I evaluate my RSU vesting offer as a PM?

A: To evaluate your RSU vesting offer as a PM, calculate the total value of your RSUs based on the company’s current stock price, and then determine the vesting schedule.amazon.com/dp/B0GWWJQ2S3).