← All glossary terms
What is RSU?
A restricted stock unit (RSU) is a promise to deliver shares of company stock after vesting conditions are met. RSUs are taxed as ordinary income at vest, based on the stock price on the vest date.
Examples
- 1,000 RSUs vesting 25% annually over four years.
- Performance RSUs that vest only if revenue targets are hit.
- Double-trigger RSUs at a pre-IPO company that vest on both service time and a liquidity event.
Why this matters
RaiseCheck converts RSU grants into an annualized comp number you can actually benchmark against the market.
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