We handle RSU withholding, reporting and related tasks for you, backed by expert assistance.
Engage employees and reward them
Attract talent worldwide and boost retention by granting employees restricted stock units (RSUs) through Remote.
Our expert team assists with withholding, reporting and navigating specialised tax regimes (such as Section 431 Elections in the UK). We are the only global HR provider to offer comprehensive RSU support (not just “virtual shares”). Even better: Remote EOR customers get RSU support at no additional cost.
Leading employees expect equity compensation. Remote helps you reward employees with RSUs compliantly, regardless of where your team is located.
Please be advised: do not let any team member feel 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.
It is crucial to understand the distinction between offering restricted stock units and stock options, the advantages and disadvantages of each, and when moving from stock options to RSUs could be appropriate for your organisation.
Stock options give the right to purchase company shares at a set price, whereas restricted stock units (RSUs) confer an actual ownership stake in the company, granted to employees without charge.
As companies grow, their equity compensation approach must adapt. Transitioning from stock options to RSUs frequently suits later-stage firms with a steadier market position, since RSUs typically exhibit lower volatility than stock options (which tend to be preferred by smaller start-ups).
As companies mature, retaining top talent grows more important. Given their relative stability, direct alignment with company performance, and the absence of a purchase requirement, RSUs frequently appeal to employees more than stock options. Consequently, RSUs serve as a strong means to attract leading candidates, build loyalty and encourage long-term contribution to the company’s success.
Unlike stock options—which require employees to pay a 'strike price' to buy shares—RSUs are granted outright upon vesting, removing any immediate financial burden from employees.
RSUs are commonly seen as offering lower upside potential than stock options, since options allow employees to gain from increases in a company's share price over time, whereas RSU value is more directly linked to the company’s present market valuation. Also, issuing substantial numbers of RSUs can cause dilution. These factors should be considered before implementing an equity plan.
While RSUs can form a valuable element of your company’s compensation toolkit, they are not invariably the optimal choice. Leaders must carefully weigh the advantages and disadvantages of RSUs versus stock options and assess their particular circumstances when determining an equity compensation approach. If you have questions, schedule a call with a Remote incentive planning expert now.