How equity fits into the package
For director of products, Director-level PSU vests often include relative TSR metrics that produce zero or 2x payouts, complicating forecasting. Base salary covers living expenses; equity carries the upside and the tax complexity.
What usually goes wrong
The most common planning mistake: treating the 22% supplemental withholding on RSU vestings as "my taxes are handled." For any director of product past the senior bracket, actual marginal rates are higher. The shortfall surfaces in April.
Planning checklist
- Model every vest against your actual marginal rate. Use the RSU vesting calculator.
- Make quarterly estimated payments if the under-withholding exceeds safe-harbor thresholds.
- Decide on a sell-at-vest policy. Holding concentrated employer stock creates risk that compounds.
- If you have ISOs, run the AMT tripwire before exercising.
- Match with an advisor when a vest crosses $500k or an exercise crosses $200k of bargain element.