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Google made $18000000000 profit last year. It could pay employees out of cash revenue, not out of stock prices if it wanted.

I don't know about Google in particular but I think RSUs are generally issued in terms of an amount of stock, not a dollar amount. As the share price goes down then Google becomes less competitive against companies with a more stable stock price who also issue RSUs.




Share price falling makes RSUs more attractive for new employees, assuming the company continues to issue the same number of shares.

It's bad for existing RSU holders though




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