RSU (Restricted Stock Unit)

A company promise to deliver shares (or cash) after you meet vesting conditions.

Also called: restricted stock unit, restricted stock units

An is a unit that represents a share of company stock you may receive in the future. You do not own the stock on grant day.

When , the company typically delivers shares to you. For many U.S. employees, that delivery is treated as wage income based on the stock's value on the .

differ from stock options: you do not choose a strike price or "exercise." The main tax timing question is usually , then sale if you sell later.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.