From “Democratized Ownership” to Financial Ruin: Klarna’s RSU Trap
I have _so much_ to say about the Klarna IPO, and in particular the former RSU program.
For years, Klarna required employees to take a significant portion of their pay in RSUs, that vested over four years. It was sold as "democratizing" ownership, but it was all smoke and mirrors.
In fact, it was a way for Klarna to slash payroll costs, and it left employees short-changed on their rightful salaries and 401K contributions (🇸🇪 tjänstepension). They were, in effect, swindled.
Now, with the IPO finally happening, more sting is in the details. Those RSUs that were pitched as a huge benefit? They convert to actual $KLAR shares at a 4:1 ratio.
Seriously considering putting together a full breakdown with all the numbers, but the early conclusion is brutal 👇
A lot of people, that were around from the start of the RSU program, are going to end up having paid more in taxes, than their shares are even worth...