What Is the Difference Between Restricted Stock and Restricted Stock Units (RSUs)?

Restricted Stock and Restricted Stock Units (RSUs) are forms of equity compensation offered to tech executives. Both types are designed to incentivize and reward professionals, but they have differences in areas such as ownership, rights, and voluntary election options.

In previous posts, we provided overviews of Restricted Stock and Restricted Stock Units (RSUs).

This post will be devoted to breaking down the differences between the two equity award types.

Restricted Stock vs. RSUs

Understanding the key differences between Restricted Stock and RSUs is crucial for making informed decisions about your equity compensation. Each has unique characteristics, investment considerations, and tax implications. Your decisions may vary depending on your personal and financial goals.

If you have restricted stock or RSUs and want guidance on how to maximize their value, how to reduce your taxes, or how to invest wisely, please reach out to us.

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