Restricted stock units

Restricted stock units

Similar to restricted stock. However, the unit represents a promise that employees will receive stock in the future. The units do not pay dividends until the stock is vested.

Restricted Stock Unit

A restricted stock, usually acquired through the exercise of a stock option, that does not vest until some date in the future. Restricted stock units do not pay dividends until they vest. Likewise, one is not responsible for taxes on these units until they vest, unless one chooses a section 83(b) election.