We handle RSU withholding, reporting and related tasks for you, supported by expert guidance.
Engage and reward staff
Attract global talent and boost retention by granting employees restricted stock units (RSUs) through Remote.
Our team of experts assists 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.
Senior employees increasingly expect equity as part of their package. Remote helps you compliantly reward staff with RSUs, no matter where your team is located.
Do not allow any team member to feel like a “second-class” employee because of where they live. By partnering with Remote, you can secure equitable total rewards and deliver a consistent employee experience across borders.
It is important to distinguish between offering restricted stock units and share options, weigh the pros and cons of each, and identify when shifting from share options to RSUs could be appropriate for your company.
Share options give the right to purchase company shares at a predetermined price, whereas restricted stock units (RSUs) provide a direct ownership interest in the company, granted to employees at no cost.
As a company matures, its equity compensation approach should evolve. Moving from share options to RSUs frequently makes sense for later-stage businesses with a steadier market presence, since RSUs tend to be less volatile than share options (which smaller startups often prefer).
Retaining top talent becomes more critical as companies grow. With greater stability, a direct connection to company performance and no requirement for employees to purchase shares, RSUs are frequently more attractive than share options. That makes them an effective way to attract top candidates, encourage loyalty and motivate teams to contribute to long-term company success.
Unlike share options, which require employees to pay a 'strike price' to purchase shares, RSUs are granted outright once vested, removing any upfront financial burden for employees.
RSUs are often seen as having lower upside potential than share options, because options allow employees to benefit from rises in a company’s share price over time while RSU value is more directly tied to the company’s current market value. Issuing large numbers of RSUs can also dilute value. These considerations should be reviewed before implementing an equity plan.
RSUs can be a valuable part of your company’s compensation toolkit, but they may not always be the right choice. Leaders should carefully weigh the pros and cons of RSUs versus share options and consider their specific circumstances when choosing an equity compensation strategy. If you have questions, schedule a call with a Remote incentive planning expert now.