Restricted Stock Unit (RSU)
What is Restricted Stock Unit (RSU)?
Restricted Stock Unit (RSU) is an ownership or financing concept that shapes how equity is granted, valued, diluted, or earned over time. In an HR context, the term is used to describe a specific idea, practice, document, or arrangement that influences how employers manage people and work. In practice, people often shorten it to RSU.
Why Restricted Stock Unit (RSU) Matters
Restricted Stock Unit (RSU) matters because it affects how organisations attract talent, align incentives with long-term growth, and explain ownership economics to employees and investors. HR teams need a clear understanding of the term to apply policy consistently, communicate expectations clearly, and make decisions that are both practical and compliant.
Common Examples or Use Cases
Restricted Stock Unit (RSU) commonly appears in offer letters, founder and advisor packages, share plan administration, fundraising discussions, and vesting schedules. The exact meaning can vary by employer, contract, and jurisdiction, so HR should define how the term is used internally and explain it in language employees and managers can follow.
Related HR Concepts
Related terms often help place Restricted Stock Unit (RSU) in context within the wider HR function: