Purpose:

RSUComp is a SaaS package allowing individuals to compare RSU (Restrictive Stock Units) and Option-based compensation using portfolio modeling, futures, warrant and option markets.

Problem:

Job candidates often find themselves with a compensation package that’s heavily slanted towards equity products. These candidates often face forfeiture of the unvested package from the company they are about to depart and assume market risk in the package of the company they are about to enter.

When comparing job packages, compensation often plays a large role, however, candidates frequently use current stock price as a guideline. They also frequently use own judgement regarding the direction of the price action throughout the vesting period, and only a small fraction of them is supported by a financial advisor.

Solution:

• RSUComp utilizes option-pricing and warrant-pricing formulas (such as Black-Scholes), together with the option- and warrant- markets, to estimate the future cashflow (and variability) from the employment contract.
• RSUComp allows candidates to educate themselves in the factors involved in estimating future value of their investment and support them in the diversification process when the contract is active.
• Once hired, RSUComp further allows employees with equity-based compensation to plan their portfolios around the future equity grants and vests – allowing them to further customize their diversification strategy.