What are restricted stock awards & restricted stock units?

Two popular forms of such equity rewards are Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs). These instruments are vital for attracting top talent, but they come with different features and consequences for recipients.

What are restricted stock awards (RSAs) vs restricted stock units (RSUs)?

Restricted stock awards (RSAs) and restricted stock units (RSUs) are two types of restricted stock equity awards. Learn the differences between RSAs vs RSUs. Restricted stock awards (RSA) and restricted stock units (RSU) are two alternatives to stock options (such as ISOs and NSOs) that companies can use to compensate their employees.

Are restricted stock awards a good investment?

For financial planning, RSAs may pose an immediate tax liability, which can impact cash flow. RSUs afford more deferral capacity, which can be beneficial from a financial planning perspective. When you receive Restricted Stock Awards (RSAs) or Restricted Stock Units (RSUs), it’s integral to develop a plan that optimizes your financial benefits.