8 Ways to Optimise
Restrictive Stock Unit Plans
8 Ways to Optimise

Restricted Stock Unit (RSU) plans are a form of equity compensation that provides employees with ownership in the company. Here are some strategies for effective RSU plans:

  1. Align RSU grants with company objectives: RSU grants should be aligned with the company's goals, mission, and values. This helps employees understand how their ownership of the company contributes to the organisation's overall success.
  2. Determine vesting schedules: Determine the vesting schedule for RSU grants. This should be based on the employee's performance and the company's goals.
  3. Communicate the RSU plan effectively: Communicate the RSU plan effectively to all employees. Ensure they understand the vesting schedule, tax implications, and the overall value of the RSU grants.
  4. Provide tax guidance: Provide employees with advice on the tax implications of RSU grants. This helps them understand the tax implications of the RSU grants and make informed decisions about their financial situation.
  5. Consider performance-based RSUs: Consider performance-based RSUs that are tied to specific performance metrics. This encourages employees to perform at their best and aligns their goals with the company's objectives.
  6. Determine the number of RSUs: Determine the number of RSUs to grant based on the employee's performance, contribution, and the company's budget.
  7. Consider RSU forfeiture: Consider RSU forfeiture clauses for employees who leave the company before the vesting period is complete. This helps ensure RSU grants are only provided to employees who remain committed to the company's objectives.
  8. Provide liquidity options: Provide employees with liquidity options, such as selling RSUs or converting them to cash. This helps employees realise the value of their RSU grants and provides them with financial flexibility.

By implementing these strategies, you can create an effective RSU plan that motivates employees, aligns their goals with the company's objectives, and drives the organisation's overall success.

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