Restricted Stock Units (RSU)

Company shares granted to an employee that convert to real stock as they vest over time.

Restricted Stock Units (RSUs) are a promise of company shares that you receive gradually as they vest, typically over several years. Unlike stock options, you don't pay to acquire them — they simply become yours on schedule and are taxed as income when they do.

RSUs are most meaningful at public or late-stage companies where the shares have a clear market value.