What are restricted stock units (RSUs)?

Restricted stock units (RSUs) refer to a form of equity compensation that is based on a company’s shares of stock (or an equivalent unit of equity) that vest upon the happening of certain conditions or “triggers.”

Technically speaking, RSUs represent a company’s contractual promise to issue shares to a worker once the specified trigger is met.

The triggers are usually time-based although it is possible to have them be based on any other relevant variables such as a worker’s performance. Double-trigger RSUs are also possible and are often utilized to address the common tax and liquidity issues associated with ordinary single-trigger RSUs. Upstock uses double-trigger RSUs for its numerous advantages and benefits.

RSUs have been gaining popularity in recent years and experts in the subject are now advocating for its use due to its unique advantages and features. If you want to learn more about RSUs, you can also read our blog post about it here.