We handle RSU withholding, reporting and related tasks for you, backed by expert support.
Engage and reward your people
Attract talent worldwide and boost retention by rewarding employees with restricted stock units (RSUs) through Remote.
Our specialists manage withholding, reporting and the complexities of special 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.
Top hires increasingly expect equity as part of their package. Remote lets you compliantly reward employees with RSUs, wherever your team is based.
Avoid anyone on your team feeling like a “second-class” employee because of their location. By partnering with Remote, you can ensure equitable total rewards and a consistent employee experience across borders.
Understanding how restricted stock units differ from stock options, the advantages and drawbacks of each, and when a company might move from options to RSUs is essential.
Stock options give the right to buy company shares at a set price, whereas restricted stock units (RSUs) represent an ownership stake in the company granted to employees at no cost.
As businesses mature, their equity plans usually evolve. Moving from stock options to RSUs often makes sense for later-stage firms with a steadier market presence, since RSUs tend to be less volatile than stock options, which smaller startups often favour.
Retaining top talent becomes more important as companies grow. Given their link to company performance, the lack of a purchase requirement, and relative stability, RSUs are often more appealing than stock options. That makes them powerful for attracting the best candidates, encouraging loyalty and motivating long-term contribution to company success.
Unlike stock options — where employees must pay a 'strike price' to purchase shares — RSUs are granted outright once vested, removing any upfront financial burden on employees.
RSUs generally offer less upside than stock options, because options let employees benefit from a company’s share price rising over time while RSU value tracks the company’s current market value more directly. Issuing a large number of RSUs can also dilute value. These drawbacks should be weighed carefully before launching an equity plan.
RSUs can be a useful part of your compensation mix, but they aren’t always the right fit. Leaders should weigh the pros and cons of RSUs versus stock options and assess their particular circumstances when choosing an equity strategy. If you have questions, schedule a call with a Remote incentive planning expert now.