I have similar offers from both companies (Seattle). Microsoft’s is cash but Dropbox’s is paper money (and most likely overvalued). Which company is better considering culture, career growth and name on resume? Dropbox: L3 $170k base, $90k RSU/yr ($12/share) Microsoft: Level 63 $160k base, $60k/yr
Dropbox has much better free food
How many years of experience do you have
Dropbox!
Dbx.
Dropbox without a doubt, don't even bother with MSFT
Whether to go to MS or not would highly depend on the team you are joining. MS comp also has 15% target bonus, not sure if Dropbox has that as for refreshers, at L63 your target will be 24k I would not rule out MS, it is a good company if you are going to a good team. Much more variety of things you can do than Dropbox. I am leaving MS for FB btw so it's not the Kool-Aid talking.
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Btw if dropbox does ipo after 4 years of your joining all those rsu’s will be taxed for that particular year and hence you will have a very big tax hit. About your question, most likely dropbox. Microsoft is too wide. There is nothing new to learn in some teams whereas awesome stuffs going on in some other teams
Lets say I have $800k worth of rsus. 25% vests in Jan 18, 25% in Jan 19,20 and 21. Lets say ipo happens in Jan 2022 So for the year 2022, my total income will be base + bonus + any other incentives + 800k joining rsus. Is this right? If this is than for that year, my income is almost a million thereby my rsu is being taxed at much higher rate than if they were taxed at regular interval. (25% each year getting added in income for that year) Capital tax gains comes only after you get your rsus in your account. For example, if you sell your rsus in 2025, then whatever amount you gained from ipo date till that day will be taxed at capital gains rate. But your initial rsu grant is taxed as income for one particular year. Does it make sense? I am not sure if I a 100% correct or not but by your reply and what others say, I am assuming that I am correct. Rsus are taxed as income at the time of release(meaning that all 800k is getting taxed as income in one particular year and not in 4 different years)
@avalon. So lets use my previous example. Lets say my $200k(25%) worth of rsus got vested in jan 2018. On vesting date, fmv was lets say $300k. So x% of $300k would be withheld and remaining 100-x% would be given to me or will be kept in my name? And from this date till I sell them (after ipo), whatever gains I get, they will be taxed at capital gains(provided i am selling after a year)? If this is the case then thats exactly how it happens at public companies. Now my question is. For these 25% of rsus that are taxed that year(before ipo) will the x% which was withheld at source be enough to cover all taxes due? If no then we would have to pay money out of pocket for some shares which we may not be able to sell ever(if ipo doesnt happen). If yes, then if we paid extra taxes, will be get a refund in actual cash from irs? I wonder why would irs pay me for something which isnt real money.
If both in Seattle, no doubt MS. Dropbox is remote office with limited options. Don't see much growth with Dropbox. Very likely will drop valuation upon IPO. MS depends on team. Don't go to msit and windows. Good benefits like Healthcare, espp, 401k if it matters to you. I'm no longer in MS, so not biased.
Dropbox