RSU
Equity grant type
RSU stands for restricted stock unit, a form of employee compensation where a company grants shares that vest over time.
The employee receives the stock only after meeting conditions—typically staying with the company for a set period: My RSUs vest over four years.
Unlike stock options, RSUs have value even if the share price drops.
They're common in tech compensation packages.
Gaining full ownership
- cliffVertical rock wall
- grantBestow or award money
- employee benefitsNon-wage workplace compensation
- restricted stockShares with sale limitations
performance criteria · retention · golden handcuffs · deferred compensation · bonus · salary · remuneration · package
Units of company ownership
- stockGoods kept for sale
- securitiesTradeable financial assets
- insider tradingIllegal securities transactions using nonpublic information
- securities lawRules governing tradable investments
SEC filing · blackout period · compliance · disclosure · registration
Employer-retained government payment
- capital gainsProfit from asset sales
- ordinary incomeEarnings taxed at standard rates
- tax advantagesFinancial incentives reducing liability
- W-2Employer-issued tax form
AMT · tax liability · cost basis · holding period · short-term gains · long-term gains · tax planning · estimated taxes
Selling assets for cash
- IPOFirst public stock offering
- acquisitionAct of obtaining something
- secondary marketExchange for existing securities
- tender offerPublic share purchase proposal
diversification · exit · monetization · public offering · cash conversion · stock sale
Plan of timed events
- time-basedDependent on duration
- performance-basedContingent on demonstrated results
- accelerationRate velocity changes
- change of controlOwnership or management transfer
termination · forfeiture · pro-rata · milestone · unvested
vesting
Gaining full ownership
- cliffVertical rock wall
- grantBestow or award money
- employee benefitsNon-wage workplace compensation
restricted stock · performance criteria · retention · golden handcuffs · deferred compensation · bonus · salary · remuneration · package · perks
shares
Units of company ownership
- stockGoods kept for sale
- securitiesTradeable financial assets
- insider tradingIllegal securities transactions using nonpublic information
securities law · SEC filing · blackout period · compliance · disclosure · registration
tax withholding
Employer-retained government payment
- capital gainsProfit from asset sales
- ordinary incomeEarnings taxed at standard rates
- tax advantagesFinancial incentives reducing liability
W-2 · AMT · tax liability · cost basis · holding period · short-term gains · long-term gains · tax planning · estimated taxes · Form 1099
liquidation
Selling assets for cash
- IPOFirst public stock offering
- acquisitionAct of obtaining something
- secondary marketExchange for existing securities
tender offer · diversification · exit · monetization · public offering · cash conversion · stock sale
schedule
Plan of timed events
- time-basedDependent on duration
- performance-basedContingent on demonstrated results
- accelerationRate velocity changes
change of control · termination · forfeiture · pro-rata · milestone · unvested
RSUcash bonus
Monetary reward beyond wages
base pay · signing bonus · spot bonus · upfront payment · hourly wage