A restricted stock award is like an RSU. However, it comes with voting rights because the employee owns the stock immediately once it is awarded. In addition, though an RSU represents a right to stock, in some cases, an employee can elect to receive the cash value of the RSU instead.
What are the different types of restricted stock?
Two variations on restricted stock are restricted stock units (RSUs) and restricted stock awards. A restricted stock unit is granted to an employee and represents the promise to give a certain number of shares of the company's stock at a predetermined time in the future.
What are restricted stock units (RSUs)?
Restricted stock units (RSUs) the most common type of equity compensation and are typically offered after a private company goes public. Like stock options, RSUs vest over time, but unlike stock options, you don’t have to buy them. As soon as they vest, they are treated exactly the same as if you had bought your company’s shares in the open market.
