The Equity Compensation Guidebook

Restricted Stock vs Restricted Stock Units, EP 54


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In today's episode, I'm going to spend a little time comparing restricted stock and restricted stock units. I know I've talked about them separately. However, I thought it was important to spend a few minutes discussing them in one episode. This isn't really a compare and contrast like we had to do a million years ago in grade school and high school. However, I want to be sure to hit the highlights for both. Both good and bad items. 

Before we start just a little bit of housekeeping as always. When I say restricted stock, I'm referring to restricted stock awards, or sometimes they're referred to as restricted stock grants, just to keep things simple, I'm going to call them restricted stock. Also, restricted stock units don't have any other names they're known by except for their abbreviation of RSUs. I'll most likely refer to restricted stock units as RSUs. Let's now get to it. 

You will want to hear this episode if you are interested in...
  • A little housekeeping before we start [0:53]
  • What are restricted stock and restricted stock units? [1:27]
  • Vesting requirements [2:27]
  • Taxes make all the difference [3:14]
  • Restricted stock is a slightly different animal [6:55]
  • Unique aspects of restricted stock [10:23]
  • This week’s FLASHBACK [13:44] 
Connect With Dan Johnson
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The Equity Compensation GuidebookBy Daniel Johnson