Definition
Equity compensation that vests over time, converting hypothetical wealth into actual shares on a schedule designed to retain talent who can't afford to leave.
Example Usage
My RSUs vest quarterly over 4 years, so theoretically I'll own $200k of stock by 2028, assuming the company doesn't implode.
Origin
Legal equity structure developed in tech in the 1990s-2000s
Fun Fact
RSU value is as volatile as the stock price, making equity compensation the corporate equivalent of lottery tickets.
Source: Equity compensation structures
Related Terms
Translate This Term
See “RSU (Restricted Stock Units)” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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