With expert support, we manage RSU withholding, reporting, and related processes on your behalf.
Inspire and reward your team
Attract international talent and strengthen retention by awarding employees restricted stock units (RSUs) through Remote.
Our team of experts assists you with withholding, reporting, and navigating 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.
High-calibre employees expect equity compensation. Remote enables you to compliantly reward staff with RSUs regardless of where your team is based.
Ensure no team member feels like a “second-class” employee because of their location. By partnering with Remote, you can provide equitable total rewards and a consistent employee experience across borders.
It is essential to understand the distinction between offering restricted stock units and stock options, assess the advantages and disadvantages of each, and determine when transitioning from stock options to RSUs might be appropriate for your company.
Stock options grant the right to buy company shares at a set price, whereas restricted stock units (RSUs) confer an actual ownership stake in the company, granted to employees without cost.
As companies mature, their equity compensation strategies should evolve. Moving from stock options to RSUs often makes sense for later-stage companies that have a more stable market presence, as the value of RSUs tends to be less volatile than stock options (which smaller startups often favor).
As companies mature, retaining top talent becomes increasingly important. Because RSUs offer relative stability, a direct link to company performance and growth, and remove the need for employees to purchase shares, they are often preferred over stock options. As such, RSUs serve as a powerful means to attract the best candidates, build loyalty, and encourage team members to contribute to the company’s long-term success.
Unlike stock options, which require employees to pay a 'strike price' to acquire shares, RSUs are granted outright upon vesting, removing any immediate financial obligation for employees.
RSUs are often seen as having lower upside potential compared to stock options, since options allow employees to benefit from increases in the company’s share price over time while RSUs reflect the company’s current market value. Issuing a large number of RSUs can also dilute value. These factors should be weighed carefully before implementing an equity plan.
While RSUs can be a valuable component of your company’s compensation toolkit, they may not always represent the optimal choice. Leaders should carefully weigh the advantages and disadvantages of RSUs versus stock options and consider their organisation’s specific circumstances when defining an equity compensation strategy. If you have questions, schedule a call with a Remote incentive planning expert now.