RSU Explained: Meaning, Types, Process, and Use Cases
Restricted Stock Unit, or RSU, is one of the most common forms of stock-based compensation used by public companies and increasingly by private companies. An RSU gives a person the right to receive company shares, or sometimes cash equal to those shares, in the future once stated conditions are met. If you work for a company, invest in one, analyze financial statements, or study equity compensation, understanding RSUs is essential because they affect pay, taxes, dilution, accounting, and shareholder value.