RSUs
Vested company shares
RSUs, or restricted stock units, are a form of employee compensation where a company promises shares of stock that vest over time.
Unlike stock options, RSUs have value even if the stock price drops.
My RSUs vest over four years with a one-year cliff.
Common in tech companies as part of total compensation packages alongside salary and bonuses.
Impartial treatment or ownership value
- vestingGaining full ownership
- stockGoods kept for sale
- grantBestow or award money
- cliffVertical rock wall
shares · bonus · retention · incentive · golden handcuffs · compensation · package · offer letter
Plan of timed events
- cliffVertical rock wall
- quarterlyFour times annually
- monthlyOccurring each lunar cycle
- unvestedNot yet owned outright
forfeiture · acceleration · change of control · termination · retention · time-based · performance-based · milestone
Earnings taxed at standard rates
- withholdingKeeping from another
- capital gainsProfit from asset sales
- AMTAbbreviated sum total
- cost basisOriginal investment value
fair market value · supplemental income · tax bracket · estimated taxes · W-2 · 1099 · tax planning · deferred
Enforced trading suspension interval
- insiderOne with confidential access
- SECStock market regulator
- lockupTemporary detention facility
- pre-clearanceAdvance approval required
compliance · earnings · disclosure · restricted · legend · brokerage · Schwab · Fidelity
Reduction in concentration
- shareholderEquity owner in corporation
- outstanding sharesStock held outside treasury
- burn rateCapital expenditure velocity
- overhangSection projecting beyond support
proxy · annual meeting · board approval · pool · issuance · registration
equity
Impartial treatment or ownership value
cliff · shares · bonus · retention · incentive · golden handcuffs · compensation · package · offer letter · sign-on
schedule
Plan of timed events
unvested · forfeiture · acceleration · change of control · termination · retention · time-based · performance-based · milestone · graded
ordinary income
Earnings taxed at standard rates
- withholdingKeeping from another
- capital gainsProfit from asset sales
- AMTAbbreviated sum total
cost basis · fair market value · supplemental income · tax bracket · estimated taxes · W-2 · 1099 · tax planning · deferred · recognition
blackout period
Enforced trading suspension interval
pre-clearance · compliance · earnings · disclosure · restricted · legend · brokerage · Schwab · Fidelity · E-Trade
dilution
Reduction in concentration
- shareholderEquity owner in corporation
- outstanding sharesStock held outside treasury
- burn rateCapital expenditure velocity
overhang · proxy · annual meeting · board approval · pool · issuance · registration
- job perkssalary, perks, pension plans, 401k, benefits
- equityshareholder equity, common stock, preferred stock, equity stakes, retained earnings
- executive paybase salary, base pay, salary, bonus, bonuses
- stock optionsstock options, strike price, vesting, vesting schedule, ISO
- compensationpay, salary, income, wage, bonus
- salary negotiationsalary, raise, counteroffer, base salary, pay raise
RSUscash bonus
Monetary reward beyond wages
wages · hourly pay · commission · signing bonus · base pay