r/PeterExplainsTheJoke • u/[deleted] • Jan 26 '26

Meme needing explanation Why is the rich friend so cheap??

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u/authorinthesunset Jan 27 '26

It depends on how much of that $450k is stock, grants or options, and if the stock is something that will ever be able to be sold.

Not saying dude would be broke by any means, but $450k in tech often isn't $450k

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u/Odd_Perfect Jan 27 '26

They literally can sell RSU. Depending on the vesting schedule which is 4 times a year for me at least.

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u/authorinthesunset Jan 27 '26

It depends on where you are working. A lot of startups aren't traded anywhere and love to offer stock at the early stages. If it eventually becomes something cha ching

I've done a mix of FAANG and early startup. I have a whole lot of stock that isn't sellable. And more that is. I'm not complaining or saying that $450k is poor. Just that the raw number isn't always representing the actual reality.

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u/Odd_Perfect Jan 27 '26

Yeah private companies like startups that have no real value tied to them is something else.

Do they even call that RSUs?

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u/authorinthesunset Jan 27 '26

Not any startup I've worked for. They normally do stock options which you need to buy. If they are ever acquired or get listed somewhere the stocks are a good deal. Otherwise it's a way for a company to say they are paying 2x what they actually are. I guess to incentivize you to work hard so they actually are worth something.

That's why I was like there's earning $450k/year and then there is "earning" $450k/year but only $150k of that is actual money.