Restricted stock unit: Difference between revisions
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It is a promise to transfer shares to the employee in the future, conditional on the achievement of certain performance targets. | It is a promise to transfer shares to the employee in the future, conditional on the achievement of certain performance targets. | ||
Restricted stock units are often used as an alternative to employee share options, particularly by startup companies. | Restricted stock units are often used as an alternative to employee share options, particularly by startup companies. | ||
Latest revision as of 17:13, 26 March 2025
Employees - compensation - remuneration - shares.
(RSU).
A restricted stock unit is a form of employee compensation and incentive.
It is a promise to transfer shares to the employee in the future, conditional on the achievement of certain performance targets.
Restricted stock units are often used as an alternative to employee share options, particularly by startup companies.
Like share options, restricted stock units are described as "vesting" at certain times, on the fulfilment of the relevant conditions.
