Good financial results: Restricted Stock Units (RSUs)


    Restricted Stock Units (RSUs)

    Everything about RSUs

    by Jason Speciner, Fort Collins Financial Planning

    You will receive a grant notification from your employer stating that you have received or will soon receive RSUs. “That’s great!” you think. “Free supply. The chance of an uptrend if the company does well. ” But …

    Now it is time to consider what exactly you own and what you can do with these RSUs.

    The jargon, perceptions, and financial planning strategies surrounding RSUs can be confusing. In this article, I’ll provide some clarity on how to handle your RSUs.

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    What is the RSU tax rate?

    by Sahil Vakil, MYRA Wealth

    When you work for a boss, there are far more exciting compensation options than a monthly salary. Some companies offer OTE (On Target Earnings) incentives or bonus programs. Most of these are related to personal performance, which is expressed as a function of the achievement of goals and objectives. The downside to these options is that they induce undesirable behaviors such as game art or sacrifice longer-term growth for short-term gains.

    A good option to turn the focus away from individual and short-term thinking is to offer equity in the form of shares in the company. The advantage of these forms of remuneration is that these types are inherently more beneficial over a longer period of time. By removing the individual metrics that are linked to goals and objectives, and taking into account the overall company value, measures to improve remuneration are shifted from the individual to the entire company.

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    I have RSUs but I haven’t sold any. Why is my tax bill so crazy?

    by Stephanie Bucko, Mana Financial Life Design

    If you work for a public tech company or a private company about to go public (Hello – Coinbase, Oscar Health, Instacart, and Rivian!), It is very likely that Restricted Stock Units or RSUs are part of your compensation structure. Restricted stock units are a form of equity compensation that gives you ownership of the company. It is not uncommon for a large portion of your compensation to be in the form of RSUs. This can be beneficial if you are part of a growing company, and especially if you were a former employee of a growing company. While RSUs aren’t particularly complicated from a tax standpoint, they can create tax confusion because the IRS withholding tax rules are different from actual taxation. In today’s blog we want to break down the options you have in dealing with these tax issues and shed some light on why they arise.

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    A collection of the most important information on Restricted Stock Units (RSUs)

    by Meg Bartelt, Flow Financial Planning

    In many blog posts and in many conversations with clients and colleagues, I’ve tried different methods of framing and understanding RSUs. I never know what framing will come home so I figured I’d put them all in one post. Maybe one thing I write below will finally make you leave: “Oooooohhhhh! This is how they work. “A girl can hope.

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    Restricted Stock Units: What They Are and How They Work

    by Rick Vazza, Driven Wealth Management

    Restricted stock units have become a popular tool to motivate and reward highly valued employees of listed companies.

    * It is important to note that Restricted Stock Units are different from Restricted Stock Awards. We’ll look at Restricted Stock Awards in our next video and article.

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    Following financial advisor blogs is a great way to access valuable, educational information about finance – and it won’t cost you anything! Our financial planners are happy to share their knowledge and help everyone, regardless of age or wealth.


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