“Interest rates (and changes, and future expectations regarding them) have huge impacts on asset prices” is something which is widely understood by finance professionals. “Asset prices materially impact your life” is not widely understood except by finance professionals.https://twitter.com/sama/status/1215450930293817345 …
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Speaking generally, increases in interest rates should cut the value of stocks, including e.g. RSUs issued by AppAmaGooBookSoft, and decreases should increase their value. Since engineering offers are set by a competitive market with material reference to AppAmaGooBookSoft...
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“My salary is a complex financial derivative” is a very counterintuitive result for many people for whom it is true.
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(FWIW I think that people should probably concentrate on the idiosyncratic risks part of that derivative rather than the interest rate part but it’s worth at least understanding that it is there so you don’t do something like get an ARM thinking ‘If rates rise, equity covers it’)
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(FWIW a lot of people would use “complex financial derivative” as a slur. I’m just using it in the positive sense. I broadly think equity ownership by employees is one of tech’s major structural innovations and is a huge portion of ongoing renegotiation of how the pie is split.)
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(There exist many options to trade off legibility / certainty for upside if legibility / certainty are more important to you, and there are many firms which are happily selling what you’re buying.)
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End of conversation
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I model my a large portion of my programming compensation as dependent on the San Francisco Planning Commission
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"RSUs are worth a lot less when money is more expensive"?
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what supervisor has incentive to structure in a haircut for themselves? just the opposite they do stock based comp n buybacks similarly those who do the 2/20 asset management prefer not to be benchmarked & only paid for legitimate risk-adjusted value add above & beyond it
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