Restricted stock units differ from stock options in a few ways, but in general, they’re simpler to deal with, and thus their benefits can be more obvious. If you’ve been offered RSUs as part of your employee compensation package, you may have some questions, so let’s dig into the basics of what they are and how they work.
What Are RSUs?
Restricted stock units are shares of company stock given to an employee as compensation after a period of time. They’re offered in addition to regular salary and benefits and are essentially just another way for companies to pay their employees.
RSUs are handed out over what’s called a vesting schedule, which means that after a certain period of time (or sometimes when performance goals are met), some or all of the shares become available to the employee at fair market value. At...
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