With expert support, we handle RSU withholding, reporting and everything else for you.
Engage and reward your team
Attract international talent and boost retention by awarding employees restricted stock units (RSUs) through Remote.
Our expert team assists with withholding, reporting and navigating specialised tax regimes (for example, Section 431 Elections in the UK). We’re the sole global HR provider offering comprehensive RSU support (not just “virtual shares”). Better still: Remote EOR customers receive RSU support at no extra charge.
High-calibre employees expect equity. Remote enables you to reward staff compliantly with RSUs, wherever your team works.
Avoid team members feeling like a “second-class” employee because of where they live. By partnering with Remote, you can ensure equitable total rewards and a consistent employee experience across borders.
You need to grasp how restricted stock units differ from stock options, the advantages and drawbacks of each, and when it may be appropriate for your company to switch from options to RSUs.
Stock options give the right to buy company shares at a set price, whereas restricted stock units (RSUs) confer a real ownership stake in the company, awarded to employees at no charge.
Equity compensation strategies should evolve as companies grow. For later-stage firms with a steadier market presence, moving from stock options to RSUs often makes sense, since RSU values tend to be less volatile than options (which are frequently favoured by smaller startups).
Keeping top talent becomes more important as companies mature. Because RSUs offer relative stability, a direct tie to company performance and no upfront purchase requirement, they’re often preferred by employees over stock options. That makes RSUs effective for attracting top candidates, building loyalty and motivating staff to help the company succeed over the long term.
Unlike stock options, which require employees to pay a 'strike price' to buy shares, RSUs are granted outright when vested, removing any immediate financial burden for employees.
RSUs are sometimes seen as having less upside than stock options, since options let employees gain from a company's share price rising over time, while RSUs are more closely linked to the company's present market value. Granting many RSUs can also dilute value. These factors should be weighed before launching an equity plan.
Although RSUs can be a valuable part of your compensation toolkit, they aren’t always the right choice. Company leaders should weigh RSUs against stock options and assess their circumstances when choosing an equity strategy. If you have questions, schedule a call with a Remote incentive planning expert now.