What is RSU?
Quick answer
A restricted stock unit (RSU) is a promise to deliver shares of company stock after vesting conditions are met.
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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Frequently asked questions
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.
When does RSU matter?
RaiseCheck converts RSU grants into an annualized comp number you can actually benchmark against the market.
What's an example of RSU?
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.
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