Image for Restricted Stock Units (RSUs)

Restricted Stock Units (RSUs)

Restricted Stock Units (RSUs) are a form of compensation offered by employers, typically as part of an employee's benefits package. When granted, an RSU is a promise to deliver company stock to the employee at a future date, often after meeting certain conditions, like staying with the company for a specific period. Unlike traditional stock options, RSUs have value even if the company's stock price fluctuates. Once the conditions are met, the employee receives the shares, which can then be sold, offering a tangible financial benefit linked to the company’s performance.