Executive Search in Japan

Closing With Stock: The Recruiter’s Guide to RSUs in Japan

• Chase Stratton • Season 1 • Episode 28

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Cash isn’t the closing currency for senior hires in Japan anymore—equity is. But many recruiters and candidates remain tangled in confusion around RSUs, vesting, tax implications, and the elusive “Japan math.” Closing a search now depends not on salary alone, but your ability to explain equity in a way that feels real and compelling.

In this episode of Executive Search in Japan, we crack open the equity puzzle and walk you through how to build offers that actually get signed.

You’ll learn:

  • Why the old base + bonus model is extinct in executive-level hiring by multinationals in Tokyo and Osaka.
  • How to explain RSUs in plain Japanese, covering vesting schedules, cliff structures, and tax treatment—and why this clarity builds trust.
  • Scripts that reduce anxiety, help candidates see value beyond cash, and confidently accept.
  • Counter-offer defense tactics, with equity as sticky collateral against “golden handcuffs.”
  • Relocation levers—like housing, schooling, and FX stability—that supplement equity to make packages more palatable and retainable.

Recruiters, pay attention: mastering equity isn’t optional. It separates the recruiters who watch offers fizzle at the finish line from those who close Japan’s most complex, high-reward searches with confidence.

Tessa Sourceley:

So if you've ever looked at the traditional Japanese job market, you probably know it for one thing. Stability.

Chase Stratton:

Right. For decades, the gold standard, especially for senior roles, was a really solid base salary.

Tessa Sourceley:

Yeah. Often topped off with a decent bonus, too.

Chase Stratton:

Exactly. It was predictable, reliable, and, well, for a lot of people, that was the definition of a secure career path.

Tessa Sourceley:

That model was, you know, deeply embedded. It really shaped expectations. Oh, completely.

Chase Stratton:

In places like Tokyo, Osaka, for multinational companies, that cash package, that was usually more than enough.

Tessa Sourceley:

It was how you showed a But what happens when that gold standard starts to, you know, lose its shine a bit?

Chase Stratton:

Well, that's the interesting part, isn't it?

Tessa Sourceley:

Because that's exactly what our sources are telling us is happening right now.

Chase Stratton:

Yeah.

Tessa Sourceley:

In today's executive search market over in Japan, we're hearing cash no longer closes senior hires. That's that's quite a statement.

Chase Stratton:

It really is. It signals a huge shift.

Tessa Sourceley:

The new currency, it seems, is equity, specifically restricted stock units or RSUs.

Chase Stratton:

And they've rapidly become the new battleground for grabbing that top talent. It's a pretty profound reevaluation of what a competitive offer looks like now.

Tessa Sourceley:

Companies just can't rely on the old high base and bonus combo anymore.

Chase Stratton:

No, not if they want to win.

Tessa Sourceley:

So what does this seismic shift mean for you listening, whether you're maybe looking at jobs in Japan or you're an employer trying to hire?

Chase Stratton:

Or even just curious about global pay trends.

Tessa Sourceley:

Right. Our deep dive today is really designed to unpack this evolving world.

Chase Stratton:

We want to look at why it's happening, what RSU is actually involved.

Tessa Sourceley:

And how smart companies are using them. The goal is really to give you a clearer picture of this new reality in Japanese compensation.

Chase Stratton:

So you can navigate it, you know, with more confidence?

Tessa Sourceley:

Okay, let's dig

Chase Stratton:

in.

Tessa Sourceley:

So let's unpack this fundamental change. We mentioned the old standard guaranteed cash. The material we looked at really drives that point home. Historically, base salary and bonus were sufficient.

Chase Stratton:

Right, for those multinational offers.

Tessa Sourceley:

But now there's this really definitive statement. This is no longer enough. Why? What's driving that change so strongly?

Chase Stratton:

It feels like a critical turning point. And that phrase, no longer enough, it really captures it. An other source reinforces this, saying more and more jobs in Japan are offering RSUs on top of the already generous guaranteed salary.

Tessa Sourceley:

So it's becoming expected now, not just a nice to have.

Chase Stratton:

Exactly. And the main driver. It's global competition. Executives in Japan, especially the ones targeted by multinationals.

Tessa Sourceley:

They're not just looking locally anymore.

Chase Stratton:

No, they're comparing offers against, well, global benchmarks, much wider comparisons.

Tessa Sourceley:

Right. OK. And those benchmarks look different.

Chase Stratton:

Very different. They almost always include equity, complex vesting schedules, you know, all sorts of things beyond just the immediate cash.

Tessa Sourceley:

So if multinationals want to compete globally for that talent.

Chase Stratton:

They have to align their packages. They need to match international standards or they simply won't win that talent war.

Tessa Sourceley:

It's fascinating. though, how a global trend like this still bumps up against local cultural nuances, which brings us to this idea. Our sources mention Japan math. What exactly is that? Is it this preference for security over potential upside?

Chase Stratton:

Yeah, it's a really key distinction. Yeah. Japan math highlights this sort of unique cultural preference in the Japanese market.

Tessa Sourceley:

Which is?

Chase Stratton:

A higher weight on guaranteed cash and maybe less on long-term upside compared to other markets.

Tessa Sourceley:

Okay, like Silicon Valley maybe?

Chase Stratton:

Exactly. Think of an executive there. They might happily take a lower base for huge equity potential, seeing it as the path to wealth.

Tessa Sourceley:

Whereas in Japan?

Chase Stratton:

Traditionally, a Japanese candidate might place a much higher value on that immediate, stable, predictable income.

Tessa Sourceley:

So this cultural leaning makes introducing RSUs, explaining their long-term value, it makes it inherently more complex.

Chase Stratton:

Definitely. You're basically asking someone to shift their financial thinking.

Tessa Sourceley:

Okay, so if RSUs are becoming critical, but there's this cultural preference for stability, that implies a pretty big knowledge gap needs filling.

Chase Stratton:

Huge.

Tessa Sourceley:

Let's dive into decoding these RSUs for the Japanese professional because, yeah, our sources flag this as a major hurdle.

Chase Stratton:

Absolutely. It's one of the biggest obstacles, honestly. The fact that most candidates here have never truly understood RSUs.

Tessa Sourceley:

Or vesting schedules or the tax side of things.

Chase Stratton:

Right. All of that. Yeah. And this isn't just a small detail. for recruiters, for companies, this knowledge gap, it can be the difference between a signed offer and a failed placement.

Tessa Sourceley:

Wow. So it's high stakes. It can actually derail things.

Chase Stratton:

It often does, unfortunately, even with strong candidates.

Tessa Sourceley:

Okay. Let's try and close that gap a bit. If I'm a professional in Japan or maybe evaluating an offer with RSUs, what are the absolute core concepts I need to get? Starting with vesting schedules, how do those usually work?

Chase Stratton:

Vesting schedules are, yeah, super crucial. When you get RSUs, You don't usually own them outright on day one.

Tessa Sourceley:

Right.

Chase Stratton:

They typically vest over time. A common example you see is like a four years cliffs schedule.

Tessa Sourceley:

OK, what does the cliff mean?

Chase Stratton:

So the cliff usually means you might not get any stock until a specific date, often one year after you start.

Tessa Sourceley:

OK, nothing for the first year then.

Chase Stratton:

Potentially, yeah. Then after that first year cliff, the rest of the shares vest gradually. maybe quarterly, maybe monthly, over the next, say, three years.

Tessa Sourceley:

And for you, the candidate, that cliff is important because...

Chase Stratton:

Because your actual cash flow from those RSUs won't start until year two. That's a vital point for budgeting if you're used to getting, say, an annual bonus right away.

Tessa Sourceley:

It changes the rhythm of your earnings.

Chase Stratton:

Completely.

Tessa Sourceley:

Okay, and then the tax implications. You mentioned anxiety around this. Our sources say RSUs get taxed differently here versus the U.S. Can we get a bit more specific?

Chase Stratton:

Yeah, that difference is significant and causes a lot of confusion. The key thing in Japan is that RSUs are typically taxed as regular employment income when they vest.

Tessa Sourceley:

Not when they're granted. No,

Chase Stratton:

when they vest.

Tessa Sourceley:

Yeah.

Chase Stratton:

So on the day your shares actually become yours, their market value is added to your taxable income for that year.

Tessa Sourceley:

And taxed at your normal income tax rate.

Chase Stratton:

Exactly, at your marginal rate, which would be quite high. This is different from, say, the U.S., where capital gains tax might apply later when you sell.

Tessa Sourceley:

So for the professional, this means...

Chase Stratton:

It means you need to plan for a potentially large tax bill hitting you at the time of vesting. It's a critical budgeting point. We'd strongly, strongly advise getting independent tax advice if you're looking at an RSU heavy offer in Japan.

Tessa Sourceley:

That's a really crucial distinction. So it's clear it's not just about offering RSUs. It's about explaining them really clearly.

Chase Stratton:

Absolutely.

Tessa Sourceley:

The need to demystify stock-based incumbent interviews to reduce candidate anxiety. That's vital, not just for recruiters, but for anyone looking at these offers, right?

Chase Stratton:

Precisely. The goal has to be building confidence. If you're a candidate, you need to feel you really understand the full value and the implications of that RSU package.

Tessa Sourceley:

And for the companies.

Chase Stratton:

For companies.

Tessa Sourceley:

Yeah.

Chase Stratton:

Providing clear, simple explanations, maybe even with examples in plain Japanese, or offering financial education sessions, that's key. It builds trust.

Tessa Sourceley:

And make sure the candidate actually appreciates the long-term potential.

Chase Stratton:

Exactly. Without that clear communication, even a great offer can just just fall flat because of misunderstanding or worry.

Tessa Sourceley:

So the theory makes sense, explain RSU's clearly, but is this actually happening? Are these RSU offers really showing up widely on job boards in Japan now?

Chase Stratton:

Oh, yeah. Let's look at some real examples from the sources because they show just how common this is becoming.

Tessa Sourceley:

Okay, good. Let's see the evidence.

Chase Stratton:

Right. It's sweeping across different roles, different industries. For example, a top leadership role like a Japan banking and expansion lead at Wise in Tokyo. Yeah. The listing explicitly states salary. JPY 20M, 23M per annum plus RSU. Yeah. Right there. Integrated into that top tier compensation.

Tessa Sourceley:

All right. So high level finance and tech. What about more traditional sectors?

Chase Stratton:

We see it there too. Via Michael Page, there's listing for a director, regulatory affairs in Kanagawa.

Tessa Sourceley:

Healthcare related.

Chase Stratton:

Yeah. Offering up to 25M JPY, including RSU. So even established industries like healthcare are definitely incorporating equity now.

Tessa Sourceley:

Interesting. And it's not just C-suite or core operational roles.

Chase Stratton:

Nope. An HR manager job in Tokyo for a global tech-driven company offers a competitive salary package, including RSUs.

Tessa Sourceley:

So crucial support functions, too.

Chase Stratton:

And it's not only the absolute top tier. Take Datadog, their business value manager APJ role in Tokyo. The salary isn't listed, but the benefits clearly state new higher stock equity, RSUs, and employees' stock purchase plan.

Tessa Sourceley:

So it's part of a broader comp strategy even for management roles.

Chase Stratton:

Right. And what's really striking, I think, is that it's not just for execs or super specialized tech roles either.

Tessa Sourceley:

Oh.

Chase Stratton:

Look at Zoom. For a mass market sales executive in Tokyo base, pay $5 million, $8 million deals per year. The package explicitly includes commission RSUs.

Tessa Sourceley:

Meaning commissions and RSUs.

Chase Stratton:

Exactly, for a mid-market sales role. That really drives home that equity isn't some niche perk anymore.

Tessa Sourceley:

It's becoming a standard piece of the puzzle for multinationals across different levels and functions in Japan.

Chase Stratton:

The message is just undeniable. Equity is, well, it's becoming the new baseline for competitive offers there.

Tessa Sourceley:

Okay, so with this new landscape pretty much established, the challenge shifts, right? It's not just offering RSUs, but making them genuinely attractive, making them sticky.

Chase Stratton:

Especially in a market that's known for its own retention tools, those golden handcuffs.

Tessa Sourceley:

Right. So how do companies make their RSU offers strong enough to compete against those strong counteroffers people might get from their current jobs?

Chase Stratton:

That's where really strategic communication comes in. Japanese firms, they are good at using those golden handcuffs, existing comp structures, long-term benefits, maybe even just strong social ties to keep people.

Tessa Sourceley:

Which leads to solid counteroffers.

Chase Stratton:

Often, yeah. So to make an RSU offer truly resilient, companies, recruiters, they need to show candidates the total comp arc over three to five years.

Tessa Sourceley:

So looking beyond just year one.

Chase Stratton:

Way beyond. Detailing the long term upside, the actual wealth building potential of the equity, not just focusing on the immediate cash bit.

Tessa Sourceley:

It's about painting that compelling picture of future growth that outweighs short term gains.

Chase Stratton:

Exactly. It's about trying to shift that Japan math thinking from immediate security to long term wealth creation.

Tessa Sourceley:

But beyond the direct comp, what else can make an equity heavy offer feel more tangible, more appealing, especially for for candidates who still value those immediate benefits.

Chase Stratton:

That's where these relocation levers, as our sources call them, become super critical.

Tessa Sourceley:

Relocation levers like what?

Chase Stratton:

Things like housing allowances, school tuition, FX stability, especially for candidates maybe making a big change or moving. These perks can be real dealmakers.

Tessa Sourceley:

And they shouldn't just be add-ons.

Chase Stratton:

No. The sources suggest they should be built into the equity pitch. So the candidate sees immediate tangible value that complements the longer-term equity.

Tessa Sourceley:

Ah, so it addresses the immediate financial concern.

Chase Stratton:

Right. And that makes the equity-heavy offer feel much more appealing and, importantly, stickier. The candidate sees both that short-term stability and the long-term potential.

Tessa Sourceley:

It really sounds like it's not just about the numbers then, it's about crafting this whole compelling package. And fundamentally, it seems building trust.

Chase Stratton:

Totally.

Tessa Sourceley:

Our sources really hammer this point, the ability to actually explain these complex offers well. That's what sets successful recruiters apart.

Chase Stratton:

And by extension, That's what empowers you, the listener, to make informed choices.

Tessa Sourceley:

Precisely. Mastering equity isn't just jargon. It's what separates recruiters who lose candidates at the finish line from those who can close Japan's most complex, lucrative searches with confidence.

Chase Stratton:

And for the listener.

Tessa Sourceley:

For you, whether you're the candidate looking at these jobs or maybe you're involved in hiring. This really highlights how crucial it is to not just understand these offers yourself.

Chase Stratton:

But also be able to clearly communicate their value and implications.

Tessa Sourceley:

Yeah. Confidence and understanding these offers, that's absolutely key for making smart career moves and for securing the best talent.

Chase Stratton:

Wow. What a deep dive indeed. Okay, let's try and bring this all together.

Tessa Sourceley:

Let's boil it down.

Chase Stratton:

Okay. So Japan's high stakes job market, especially where global players are involved, it's seen this massive shift.

Tessa Sourceley:

Right. Forget the old cash is king idea.

Chase Stratton:

RSUs are effectively the new currency for attracting top talent now.

Tessa Sourceley:

The days when just offering a big salary and bonus was enough, they're pretty much over. And this change is driven by multinationals needing to compete for talent on a global stage.

Chase Stratton:

Which means a whole new level of understanding is needed. From job seekers, from employers, everyone involved.

Tessa Sourceley:

And that unique Japan math, that cultural preference for guaranteed cash, it means just offering RSUs isn't the whole story. They have to be explained really clearly. Their long-term value needs to be shown.

Chase Stratton:

And often strategically boosted with other benefits to make the offer truly competitive and attractive.

Tessa Sourceley:

This isn't just some passing trend, is it? It feels like it reflects Japan's deeper integration into the global talent economy.

Chase Stratton:

I think so. Companies are adapting fast and candidates need to adapt too to navigate this more complex landscape.

Tessa Sourceley:

Which is potentially far more rewarding in the long

Chase Stratton:

run. Could be, yeah.

Tessa Sourceley:

So as we wrap up, here's maybe a final provocative thought for you, the listener, to chew on. What does this fundamental shift really mean for the future of work in Japan? Will Japan math that deep seated preference for immediate stability? Will it eventually just fully align with global norms, moving entirely to equity heavy packages?

Chase Stratton:

Well, we see a unique hybrid model stick around, one that kind of blends traditional Japanese values with these global market demands.

Tessa Sourceley:

And how might this evolution shape career choices, both for local Japanese talent who might need to adjust expectations?

Chase Stratton:

And for international professionals looking to work there who might actually find these compensation structures more familiar now?

Tessa Sourceley:

Yeah. This trend, it's really not just about a job offer, is it?

Chase Stratton:

No, it feels bigger. It's about Japan's deepening connection to the global talent economy and what that signals for hiring and keeping talent in the years ahead.

Tessa Sourceley:

Well, thank you for joining us on this Depth Dive.

Chase Stratton:

My pleasure.

Tessa Sourceley:

We really hope this has given you some valuable new insights into the shifting sands of compensation over in Japan. Until next time, keep digging for knowledge.

People on this episode

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Chase Stratton

Co-host
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Tessa Sourceley

Co-host