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Business & Workplace Languageabbreviation · /ɑːr.es.juː/

RSU

In simple English

An RSU is a promise from your company to give you shares of company stock after a vesting period, usually 3 to 4 years. Unlike stock options, RSUs have value even if the stock price drops. When your RSUs vest, you receive the actual shares and pay taxes on their current market value. Tech companies commonly use RSUs as part of total compensation packages to retain talent and align employee interests with company performance. You will see RSUs mentioned in job offers, compensation discussions, and company benefits documentation.

Understand what RSUs are and how they work as part of tech company compensation

At a glanceCEFR B2
Commonness4/5
Versatility3/5
FormalityCasualFormalNeutral
Spoken ↔ WrittenSpokenWrittenBoth
Directness ↔ DiplomaticDirectDiplomaticDirect
RegionUS and UK
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Say it like this

✓My RSUs vest over four years
✓The company offers 50,000 RSUs as part of the signing bonus
✓I will receive my RSU grant next month

Real examples

in a salary negotiation

"The offer includes a base salary of 150,000 dollars plus 20,000 RSUs vesting over four years."

in a team conversation

"Once my RSUs vest, I can sell them and diversify my investment portfolio."

in an HR discussion

"Your first batch of RSUs will vest in one year, with the remainder vesting quarterly thereafter."

Don't say this

Handle with care. RSU is strictly a compensation term; do not confuse it with stock options or other equity awards. Only use when discussing restricted stock units specifically.

✕I received 1,000 RSUs, so I own stock now
✓I received a grant of 1,000 RSUs, but I will only own the stock after they vest— RSUs are restricted until vesting; you do not own the shares immediately upon grant
✕RSUs are the same as stock options
✓RSUs are different from stock options because they have value regardless of stock price— Stock options only have value if the stock price exceeds the strike price; RSUs always have intrinsic value
✕I do not pay taxes on my RSUs
✓I pay income tax on my RSUs when they vest based on their market value at that time— RSU vesting is treated as income for tax purposes in most jurisdictions

Other forms

noun

RSU

"My RSU package is worth approximately 200,000 dollars over four years"

noun

RSUs

"The company grants RSUs to all employees at the senior level and above"

noun

RSU grant

"I am excited about my RSU grant in the new job offer"

Often used with

RSU vestingthe process of RSUs becoming actual shares over time; example: RSU vesting schedules are typically four years
RSU grantthe initial award of RSUs to an employee; example: My RSU grant was announced in the offer letter
vest RSUswhen RSUs convert to actual stock; example: My RSUs vest quarterly over a four-year period
RSU valuethe monetary worth of RSUs based on current stock price; example: The RSU value changed significantly after the earnings report

Similar words

equity compensationbroader term that includes RSUs, stock options, and other share-based awards
stock grantgeneral term for any grant of company stock; RSUs are a specific type of stock grant

Opposites

salarybonus

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Practice

Try it

4 quick exercises

Pick the most natural phrasing

1. You are explaining your compensation package to a friend. How would you naturally say it?

Complete the sentence

2. My job offer includes 10,000 _______ with a four-year vesting schedule.

Spot the mistake

3. Which sentence uses RSU incorrectly?

Rewrite naturally

4. Rewrite in natural tech English: The organization gave me shares that I cannot sell until after a waiting period, and the price is set by the stock market value at the time they become available.

Questions

Quick poll

Have you said "rsu" in a standup this week?

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