Stock options or RSU's?

First time employee at JnJ and I've been told to expect LTI this year and I know I get to pick between RSU's or options or a mix. I'd like to know historically how these different choices have worked out for people. Thanks!

 

This will be my 4th or 5th year getting LTI. First time I went with 100% Options, which had the $115 grant price - I then cashed those out after the COVID rebound at $152. So I made out pretty well on those compared to if I took the RSU's at the time.

The next year I did 100% RSU, followed by a 50/50 split, then another 100% RSU. Tried to get a nice mix with what I have.

This year I'm going to do another 100% RSU. Looking at our stock price -- it hasn't grown at all in the past 3 years. And I'm not sure the growth is there to warrant options.

If you're young, don't need the money and think we have huge growth potential in the next 3-5-10 years, go with options.

 

Problem with RSUs is you pay tax when they mature. Could be a big tax hit.

 

True - don't they just cover the tax withholding from your shares at the time of vesting? You don't have to pay out of pocket