Expert support to manage RSU withholding, reporting and other related processes on your behalf.
Engage and reward employees
Attract international talent and boost retention by awarding employees restricted stock units (RSUs) through Remote.
Our experts manage withholding, reporting and navigate specific tax regimes (such as Section 431 Elections in the UK). We are the only global HR provider offering comprehensive RSU support (not just “virtual shares”). Even better: Remote EOR customers get RSU support at no additional cost.
High-calibre employees expect equity as part of their package. Remote helps you compliantly grant RSUs to employees regardless of where your team is based.
Avoid team members feeling like “second-class” employees due to their location. Partnering with Remote helps you deliver fair total rewards and a consistent employee experience across borders.
Understand the differences between offering restricted stock units and stock options, weigh the pros and cons of each, and identify when transitioning from stock options to RSUs could be appropriate for your company.
Stock options grant the right to buy company shares at a set price, whereas restricted stock units (RSUs) confer actual ownership in the company and are awarded to employees without cost.
As companies mature, their equity strategies should evolve. For later-stage businesses with a steadier market presence, moving from stock options to RSUs can make sense, since RSU values tend to be less volatile than stock options (which are commonly preferred by smaller startups).
Retaining top talent becomes more important as organisations mature. Because RSUs offer relative stability, a clear link to company performance and no purchase requirement, they are often preferred by employees over stock options. That preference makes RSUs a strong tool for attracting candidates, building loyalty and motivating long-term contribution to company success.
Unlike stock options, which require employees to pay a 'strike price' to purchase shares, RSUs are delivered outright when vested, removing any upfront financial obligation for employees.
RSUs are sometimes seen as having lower upside potential than stock options, since options let employees benefit from price appreciation over time while RSU value is more directly linked to the company’s current market value. Issuing large volumes of RSUs can also dilute value. These factors should be assessed before implementing an equity plan.
RSUs can be a useful element of your compensation mix, but they are not always the ideal choice. Leaders should carefully weigh RSUs against stock options in light of their particular circumstances when forming an equity strategy. If you have questions, schedule a call with a Remote incentive planning expert now.