Restricted stock units, or RSUs, are a type of equity compensation that grants employees a specific number of shares over a designated vesting schedule.
Typically, this schedule follows the traditional four-year format, where a certain percentage of shares are vested each year.
One key aspect of RSUs is that when they vest, the individual gains immediate ownership of the shares, rather than receiving a partial share or waiting for a certain period of time before gaining full ownership.
This immediate ownership of shares upon vesting is a significant benefit for employees, as it allows them to have a direct stake in the company and its performance.
Unlike stock options, where employees have the right to purchase shares at a predetermined price in the future, RSUs provide employees with actual ownership of shares without the need to make any additional financial investment.
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YouTube:
https://youtu.be/47HjlXGNwAg
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https://www.techcareersandmoneytalk.com/rsu-strategies
