Employee stock options and restricted stock units are collectively discussed under the umbrella of equity compensation. As equity compensation, they have some similarities. Yet they also have a lot of differences. It is these differences that are reviewed and highlighted in this article.
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.
Some employers may allow you to choose how you receive your equity compensation. They may allow you to receive it all in NQSOs or all in RSUs or they may allow you to…
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…
If you work for a private company and receive restricted stock units as part of your compensation package, that equity compensation may have a double-trigger provision. While not all restricted stock units, or RSUs, come with this feature, it’s an important element to understand. What Are Double-Trigger RSUs? Double-trigger restricted stock units are those that…
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...
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...
Restricted stock units are commonly used as a compensation tool by employers who want to reward and retain key employees. 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...
Restricted stock and restricted stock units (RSUs) are both commonly-used tools to attract and retain employees. While similar in feel, restricted stock, and restricted stock units are technically different instruments, the details of which go beyond the scope of this...
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
Understand what you have, what you should consider, and what ultimately matters to you.
Understand what you have, what you should consider, and what ultimately matters to you.
Understand what you have, what you should consider, and what ultimately matters to you.
Get the Ultimate Guide to Incentive Stock Options to better understand your equity compensation.
