Should You Really Sell Your Vested Restricted Stock Units? The Answer Is a Resounding “Maybe”

Do you hold Restricted Stock Units (RSUs) that are about to vest, or have recently vested? That probably means you’re a valued employee, so congrats on that. Still, vested RSUs are a taxable event in your life, as well as a financial planning conundrum: Are you better off hanging onto the vested company stock you now hold, or selling them, to reinvest the proceeds elsewhere? A common—and often correct—consensus is to sell the vested stock shares that originate from vested RSUs.

Employees who receive Restricted Stock Units (RSUs) as part of their compensation will have a number of things to consider. Tax implications, financial planning...

Restricted stock units and employee stock options are commonly-awarded types of equity compensation that you may receive as part of your overall pay from your employer. While both restricted stock units and stock options are forms of equity, they each have particular features and are treated very differently from a tax perspective. Restricted stock units or awards (RSUs) typically...

Restricted stock is often considered the simplest type of equity compensation to understand. And relative to other types of equity you could receive, this might be true. But that doesn’t mean managing restricted stock is easy. Restricted stock gets complicated thanks to factors such as double triggers, tax withholding (or lack thereof), and sell-to-cover or...

Restricted stock units are often considered the most straightforward type of equity compensation. Unlike other ways that employees can receive shares of company stock, restricted stock units (or RSUs) often have a largely automated process for granting, vesting, and taxation. Once vested and settled, the fair market value of the RSUs is taxed and the...

If you are on the receiving end of an equity compensation award, you may be overwhelmed by the amount of new information, jargon, and rules coming your way. You might also feel uncertain about how new.

There are many types of equity compensation that an employer can include in an employee’s compensation package to attract and retain the best talent. Each kind has its own set of rules that apply to how that equity is managed, granted, and taxed. It’s important to understand these nuances if you have access to benefits like employee stock options or grants of company stock. Restricted stock units and restricted stock awards (commonly referred to as...

Restricted stock units are often offered as part of a compensation package to attract and retain key employees   They are restricted in that certain requirements must be met before the employee can obtain full ownership rights to the value of the units. Receiving your RSUs is usually contingent on staying employed with the company for a certain period of time, which is why the units come with a vesting schedule. Before they vest, RSUs are...

Restricted stock units (RSUs) might seem relatively easy to manage once they vest, especially when compared to the potential complexity of vested non-qualified and incentive stock options. RSUs look straightforward because your options can seem limited, meaning you have fewer decisions to make. But the truth is, you may have several choices around the actions to take next, including how to pay the requisite tax due or if you should retain shares after vesting. Deciding...

Restricted stock units are commonly used as a compensation tool by employers who want to reward and retain key employees. co If you’re on the receiving end of restricted stock units, or RSUs, you could be set to financially benefit if you meet specific conditions set by your employer. The requisite condition is often staying employed with your company for a stated period. If you meet the length-of-time condition, your RSUs vest and the value...