Stock Options Plan RSU
|
|
|
|
|
Key benefit |
Employees have the right to purchase shares of company stock at the strike price |
Employees receive shares of company stock |
|
Action required |
Employee must exercise the options to get stock |
No action is required by the employee to get stock |
|
Exercise price |
Generally based on the stock’s fair market value near the grant date |
None |
|
Vesting |
Usually awarded on a set time-based vesting schedule |
Usually awarded on a set vesting schedule based on time and/or company liquidity event |
|
Taxation |
Potentially taxed at exercise, then again at sale depending on the stock price at purchase vs. sale |
Taxed when vested, and potentially again if the stock goes up after vesting but before sale |
|
Common uses |
Early or mid-stage start-ups |
Late-stage start-ups and public companies |
