restricted stock

Conditional equity grant

Restricted stock is company shares granted to employees that cannot be sold until certain conditions are met—typically a vesting period or performance targets.

Unlike stock options, restricted stock has value even if the share price drops.

Her compensation package included salary plus restricted stock vesting over four years.

The restrictions encourage employee retention.

compensation

executive pay

Senior management remuneration

deferred compensation · remuneration · clawback · forfeiture · employee benefit · perquisite

ownership

shares

Units of company ownership

holdings · book entry · shareholder rights · voting rights · proprietorship · title transfer · outstanding shares

vesting

vesting schedule

Timeline for earning ownership

trigger event

corporate

board approval

Directors' collective consent

overhang · burn rate

securities

SEC

Stock market regulator

compliance

Opposites
compensation structure

restricted stockcash bonus

Monetary reward beyond wages

salary · cash payment · stock options

market access

restricted stockcommon stock

Basic corporate ownership units

free float · float

Family

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