RSA Planning/Strategy
Having/creating a plan for your RSAs improves your decision making
Last updated
Having/creating a plan for your RSAs improves your decision making
Last updated
What key decisions do I have to make regarding my RSA grant?
What should I do if my RSAs are not typical or have unique dynamics?
Unlike the other primary forms of stock comp (; ; ), planning for RSAs is typically quite simple. As noted in the , RSAs are predominately only awarded in the very early stages of a company, granted to founders and the first few company employees.
At that point in time, the company FMV is typically miniscule, and nearly every RSA grant allows for 83(b) early exercise. , there are very compelling reasons and a higher attractive risk/reward for every founder/early employee RSA recipient to early exercise 100% of their grant when they receive it. All in, the strategy for an RSA grant is typically obvious: exercise 100% via 83(b).
If your RSA circumstances don't conform to the vast majority detailed above, we recommend consulting a professional to help you consider the unique pro/cons of your situation and to align upon a plan/strategy. And as a potentially helpful reference, RSAs are similar to RSUs in most ways, so for your situation you may find that the section to be helpful for reference and context purposes.