InsidersTradesSigma
Instruments & Market Microstructure
A company promise to deliver shares to an employee once a vesting condition is met, granting no ownership or voting rights until it vests.
An RSU is the dominant form of equity compensation at large listed companies. Unlike an option, it has no strike price, so it retains value even if the share price falls; unlike restricted stock, the shares do not exist until vesting, so there is nothing to vote or sell beforehand. Vesting is usually time-based (e.g. 25% per year over four years) and sometimes performance-based.