Restricted Stock Unit definition: Copy, customize, and use instantly
Introduction
The term "Restricted Stock Unit" refers to a form of compensation offered by a company to its employees, typically as a part of a stock-based incentive program. These units represent an entitlement to a set number of shares in the company, subject to certain conditions such as vesting periods or performance metrics. RSUs are often used to align the interests of employees with those of the company, providing an incentive to remain with the company and contribute to its long-term success.
Below are various examples of how "Restricted Stock Unit" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Restricted Stock Unit" in equity compensation
This definition ties "Restricted Stock Unit" to stock-based employee rewards.
"Restricted Stock Unit" means a grant of company stock awarded to an employee, which vests over a defined period or upon achieving specific performance criteria.
Definition of "Restricted Stock Unit" in executive compensation plans
This definition connects "Restricted Stock Unit" to leadership incentives.
"Restricted Stock Unit" refers to an equity-based compensation arrangement where executives receive company shares upon fulfilling service or performance conditions.
Definition of "Restricted Stock Unit" in corporate governance
This definition applies "Restricted Stock Unit" to corporate decision-making and shareholder rights.
"Restricted Stock Unit" means an equity grant subject to vesting conditions, entitling the holder to company shares but without voting rights until vested.
Definition of "Restricted Stock Unit" in long-term incentive plans (LTIPs)
This definition links "Restricted Stock Unit" to deferred compensation structures.
"Restricted Stock Unit" refers to a deferred compensation award granting company shares to an employee or executive upon meeting predetermined time-based or performance-based conditions.
Definition of "Restricted Stock Unit" in private companies
This definition ties "Restricted Stock Unit" to non-publicly traded firms.
"Restricted Stock Unit" means a stock award granted by a private company, convertible into shares or cash upon meeting vesting criteria, often in preparation for an IPO or acquisition.
Definition of "Restricted Stock Unit" in mergers and acquisitions (M&A)
This definition connects "Restricted Stock Unit" to corporate transactions.
"Restricted Stock Unit" refers to an equity grant that may accelerate, convert, or be forfeited upon a merger, acquisition, or change in company control.
Definition of "Restricted Stock Unit" in financial reporting and accounting
This definition applies "Restricted Stock Unit" to stock-based compensation disclosures.
"Restricted Stock Unit" means an equity-based award recorded as an expense on financial statements, reflecting deferred compensation obligations.
Definition of "Restricted Stock Unit" in startup equity grants
This definition links "Restricted Stock Unit" to early-stage company compensation.
"Restricted Stock Unit" refers to an incentive used by startups to attract talent, granting stock that vests over time or upon reaching liquidity events.
Definition of "Restricted Stock Unit" in stock plan administration
This definition ties "Restricted Stock Unit" to employee stock plan management.
"Restricted Stock Unit" means an award granted under a company's stock incentive plan, subject to vesting conditions and eventual conversion into shares or cash.
Definition of "Restricted Stock Unit" in tax treatment of equity compensation
This definition connects "Restricted Stock Unit" to tax obligations.
"Restricted Stock Unit" refers to a form of equity compensation that is taxable as ordinary income upon vesting, unless deferred under a tax-advantaged plan.
Definition of "Restricted Stock Unit" in global workforce compensation
This definition applies "Restricted Stock Unit" to multinational employee benefits.
"Restricted Stock Unit" means a stock award granted to employees across different jurisdictions, subject to varying tax, legal, and compliance regulations.
Definition of "Restricted Stock Unit" in clawback provisions
This definition links "Restricted Stock Unit" to compensation recovery policies.
"Restricted Stock Unit" refers to an equity award that may be subject to forfeiture or repayment under clawback policies if certain misconduct or financial restatement triggers occur.
Definition of "Restricted Stock Unit" in stock dilution considerations
This definition ties "Restricted Stock Unit" to shareholder value impact.
"Restricted Stock Unit" means a stock-based award that increases the number of outstanding shares upon vesting, potentially diluting existing shareholders.
Definition of "Restricted Stock Unit" in alternative compensation structures
This definition connects "Restricted Stock Unit" to cash-settled stock awards.
"Restricted Stock Unit" refers to an award that may be settled in cash instead of shares, depending on company policy or recipient election.
Definition of "Restricted Stock Unit" in employment agreements
This definition applies "Restricted Stock Unit" to contractual compensation terms.
"Restricted Stock Unit" means an equity-based incentive detailed in an employee’s contract, outlining vesting schedules, forfeiture conditions, and settlement terms.
Definition of "Restricted Stock Unit" in deferred compensation plans
This definition ties "Restricted Stock Unit" to structured employee benefits.
"Restricted Stock Unit" means a deferred equity compensation award that entitles an employee to company stock upon meeting service or performance conditions.
Definition of "Restricted Stock Unit" in public company stock grants
This definition connects "Restricted Stock Unit" to listed company equity programs.
"Restricted Stock Unit" refers to an equity-based award provided by a publicly traded company, where shares are delivered upon completion of vesting terms.
Definition of "Restricted Stock Unit" in executive retention strategies
This definition applies "Restricted Stock Unit" to leadership continuity.
"Restricted Stock Unit" means a stock grant used as a retention tool for executives, subject to multi-year vesting schedules and forfeiture clauses.
Definition of "Restricted Stock Unit" in capital market transactions
This definition links "Restricted Stock Unit" to securities issuance.
"Restricted Stock Unit" refers to a form of stock compensation granted as part of capital market activities, often tied to shareholder approval and regulatory compliance.
Definition of "Restricted Stock Unit" in performance-based compensation
This definition ties "Restricted Stock Unit" to business objectives.
"Restricted Stock Unit" means an equity award that vests only if specific financial, operational, or market performance targets are met.
Definition of "Restricted Stock Unit" in employee termination clauses
This definition connects "Restricted Stock Unit" to separation agreements.
"Restricted Stock Unit" refers to an unvested stock grant that may be forfeited, accelerated, or settled in cash upon employee termination.
Definition of "Restricted Stock Unit" in IPO lock-up periods
This definition applies "Restricted Stock Unit" to stock liquidity restrictions.
"Restricted Stock Unit" means an equity grant that may be subject to additional post-vesting lock-up periods, restricting the sale of shares after an initial public offering.
Definition of "Restricted Stock Unit" in bankruptcy and restructuring
This definition links "Restricted Stock Unit" to financial distress scenarios.
"Restricted Stock Unit" refers to an equity award that may be canceled, restructured, or converted into alternative compensation in the event of bankruptcy or financial restructuring.
Definition of "Restricted Stock Unit" in taxation of expatriate employees
This definition ties "Restricted Stock Unit" to global mobility compliance.
"Restricted Stock Unit" means a stock-based incentive granted to expatriate employees, often subject to tax obligations in multiple jurisdictions.
Definition of "Restricted Stock Unit" in government contractor compensation
This definition connects "Restricted Stock Unit" to regulatory pay structures.
"Restricted Stock Unit" refers to a stock award granted to employees of government contractors, often subject to additional compliance and disclosure requirements.
Definition of "Restricted Stock Unit" in severance agreements
This definition applies "Restricted Stock Unit" to exit packages.
"Restricted Stock Unit" means an equity award that may be included in severance agreements, with vesting terms negotiated upon separation from the company.
Definition of "Restricted Stock Unit" in accelerated vesting events
This definition links "Restricted Stock Unit" to stock grant modifications.
"Restricted Stock Unit" refers to an award where vesting may be accelerated upon retirement, disability, death, or corporate restructuring events.
Definition of "Restricted Stock Unit" in joint ventures and partnerships
This definition ties "Restricted Stock Unit" to equity sharing in collaborations.
"Restricted Stock Unit" means an equity incentive granted to employees or executives involved in joint ventures or strategic partnerships, subject to predefined vesting milestones.
Definition of "Restricted Stock Unit" in stock plan dilution policies
This definition connects "Restricted Stock Unit" to shareholder equity concerns.
"Restricted Stock Unit" refers to a stock-based award that increases the company’s outstanding share count upon vesting, potentially affecting stock dilution calculations.
Definition of "Restricted Stock Unit" in restricted securities regulations
This definition applies "Restricted Stock Unit" to securities law compliance.
"Restricted Stock Unit" means a stock grant subject to holding periods, resale restrictions, and regulatory filings under federal and state securities laws.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.