RSU
Business & Finance abbreviation · Human Resources
| Stands for | Restricted stock unit |
|---|---|
| Categories | Business & Finance |
RSU stands for Restricted stock unit, a human resources abbreviation.
Promise by an employer to deliver company shares, or their cash value, once vesting conditions are met, typically on a schedule such as four years with a one-year cliff. When RSUs vest, their market value is taxed as ordinary wage income.
Example: My RSUs vest quarterly, and the company withholds shares to cover the taxes.
Usage notes
RSUs replaced stock options as the main equity award at many large public companies in the 2000s because they keep value even when the stock price falls. Private companies often use "double-trigger" RSUs that vest only after both time and a liquidity event such as an IPO. Federal withholding on vesting is commonly set at the 22% supplemental rate, which can fall short of the actual tax for high earners.
Related abbreviations
More human resources abbreviations
- PT – Part-time
- PTO – Paid time off
- QLE – Qualifying life event
- req – Requisition
- RIF – Reduction in force
- RPO – Recruitment process outsourcing
- RTO – Return to office
- RTW – Return to work
- SHRM-CP – SHRM Certified Professional
- SHRM-SCP – SHRM Senior Certified Professional
- SMP – Statutory Maternity Pay
- SPD – Summary plan description