Restricted Stock
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Restricted Stock

Restricted Stock

Restricted stock, restricted stock units (RSUs), and performance shares are not as simple as they look. Understand your grant details, the tax treatment, and financial planning for vested shares. Browse an overview of this section below, or explore the subtopics to the left.

In addition to the main areas about basic and advanced topics in all these types of grants, see the special subsections that are exclusively about restricted stock units and performance shares.

Selected Articles

Taxes Advanced

Restricted Stock & RSUs: 10 Mistakes To Avoid On Your Tax Return This is premium content

Restricted stock, restricted stock units (RSUs), and performance shares bring their own very special issues to tax returns. The potential for mistakes has been increased by recent IRS changes in reporting rules. This article presents tips for sidestepping tricky common pitfalls that can even fool professional tax-return preparers.
Restricted Stock Units

Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts

Video included! Restricted stock units (RSUs) are the most popular alternative to stock options, but they work very differently. Also, while grants of restricted stock and grants of RSUs are somewhat similar, they too differ in key ways, so it is important to understand RSUs in their own right. This article series explains the basic facts of RSUs, including vesting and tax treatment, that you must know to make the most of an RSU grant.
Restricted Stock Units

Sell Or Hold RSU Shares At Vesting? 3 Approaches To Consider This is premium content

When your restricted stock units (RSUs) vest, you have a lot of wealth tied up in one stock. How many of your RSU shares should you sell? How many should you hold? This article presents ways to approach your best answer to those key financial-planning questions.
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Basics

The Great Benefits Of Restricted Stock And Restricted Stock Units (RSUs)

Podcast and video included! Receiving a grant of restricted stock or restricted stock units (RSUs) is a reason to celebrate. This article explains the value to you.
Restricted Stock Units

VIDEO! Restricted Stock & RSUs (Part 1): Key Aspects To Know

Presented by the editor-in-chief of myStockOptions.com, this engaging video covers the fundamentals of restricted stock, restricted stock units (RSUs), and performance shares to help you make the most of these grants. This video covers key concepts, such as vesting schedules and understanding your grant's value. Running time: 4:37
Restricted Stock Units

NEW! How Amazon, Apple, Google Adapted Their RSU Grants To Help Retain Top Talent This is premium content

Hiring competition, the Great Resignation, and market volatility are prompting changes in longstanding stock comp practices for key performers at big, established tech companies such as Amazon, Apple, and Google.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Basics

Video included! What are the top 10 questions I should ask about my grant of restricted stock or RSUs?

You should know the answers to the questions in this FAQ's checklist and be familiar with the topics presented in the related video. Understanding these will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...
Taxes

Video included! When and how is a grant of restricted stock or RSUs taxed?

The timing of taxation is different than that of stock options. You pay tax at the time the restrictions on the stock lapse. This occurs when...
Taxes Advanced

What are the biggest mistakes with restricted stock or RSUs that I can make on my tax return, and how can I avoid them? This is premium content

It is all too easy to make costly tax-return errors that attract unwanted IRS attention. Learn how to prevent mistakes in the 2021 tax season...
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Basics

UPDATES! My restricted stock/RSUs will vest soon. What must I do and decide? This is premium content

When vesting occurs and the restriction on the shares lapses, you have some choices but fewer than you would with stock options, which require decisions about exercise timing and method. Restricted stock and restricted stock units do not...
Basics

What are restricted stock and restricted stock units (RSUs), and how do they differ?

While restricted stock and RSUs are siblings, they have important differences, as explained by this FAQ, which includes a quick-reference table clearly presenting the comparison...
Basics

Can restricted stock and performance shares go underwater? This is premium content

Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if...
Taxes

My restricted stock grant is about to vest. Any way to reduce the tax impact? This is premium content

Usually not directly with the vesting. However, you can plan around the higher income. Here are a few ideas to consider...
Basics

What is restricted stock? Does it differ from restricted securities?

Don't confuse restricted securities and restricted stock. They are very different...
Basics

NEW! Are restricted tokens similar to restricted stock? This is premium content

While the two grant types have some similarities, the worth of restricted tokens depends on the value of an underlying cryptocurrency, not the company’s stock price. Tokens are attracting attention as a form of compensation because...
Basics

Does this website's content on restricted stock also apply to restricted stock units (RSUs)?

Generally, yes, with two exceptions. First, with RSUs you cannot...
Basics

Why do many companies grant restricted stock and RSUs instead of stock options? This is premium content

The compensation philosophies of companies are continually changing under the influence of many factors, from accounting rules to...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.
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