Equity, simplified: model RSUs and options over four years

What equity actually means in your paycheck

Equity is promise plus timing plus risk. RSUs behave like delayed cash that vests on a schedule. Options are the right to buy shares at a set price—valuable if the company grows, worthless if it doesn’t. The shape of your vesting (cliff, cadence, refresh) changes the year‑by‑year math more than most people expect.

Three clear scenarios

Conservative: 0–2% annual growth, RSUs vest quarterly, options get a haircut for illiquidity. This sets your floor and keeps you honest about risk.

Base case: 5–8% growth, annual equity refresh at a realistic percentage, and bonuses hitting their historical payout rate. This is the scenario you’ll probably live.

Upside: Company outperforms and refreshes are meaningful. Great to see—but never the only reason to say yes.

Make refresh real

Refresh should be written, not wished for. If it isn’t in the offer letter or backed by history, model zero. If it exists, model how it vests and overlaps with your initial grant. That overlap can make years two and three your best compensated years—or not.

Where Compin helps

Compin lets you enter RSUs and options, pick vesting and refresh patterns, and compare four‑year totals side‑by‑side. You can apply a conservative haircut to options, tweak appreciation, and immediately see how the shape of equity changes your real compensation.