RESTRICTED STOCK UNITS - RSU

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Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employers for a particular length of time.

RSUs give an employee interest in company stock but have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they are vest. Upon vesting, they are considered income,and a portion of the shares are withheld to pay income taxes. The employee receives the remaining shares and can sell them at their discretion.

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