This POD is a highly requested episode from our clients: understanding the equity package that tech companies and startups offer nowadays as part of an employee’s compensation.  There are different types of equity - some of the most common ones are RSU (restricted stock units), NQSO (non-qualified stock options), and ISO (incentive stock options).  How should one decide what package to choose if the company offers multiple combos?  Tim pointed out that it really depends on whether the company is publicly traded or privately owned.  There are so many things to consider: what your spending vs. your cash flow looks like, do you need to live off the equity in the short term, do you need to bring cash to exercise the equity, and what are the tax consequences for each option…? Another “option craze” perspective is that younger generations switch jobs more frequently than their parents.  That means you are building your own little investment portfolio with all the tech/startups’ stocks/options/units.  As Tim said, a long-term mindset is especially important if you want to take full advantage of these packages.