Restricted Stock Units (RSU)
RSU’s are actual shares of stock that are granted to an employee with restrictions as to when the employee may sell or otherwise dispose of the stock. The vesting of restricted stock is typically based on specific performance goals and/or, more commonly, the time an employee works at the company.
One common goal of financial planning is to minimize the tax liabilities tied to your equity compensation, and maximize your earnings potential in a liquidity event.