restricted stock unit

restricted stock unit
restricted stock unit (RSU)
USA
A compensatory award granted by a company to an employee or other individual performing services for the company. A RSU represents a promise by the company to transfer a share of the company's stock or a cash payment equal to the value of a share of the company's stock at a specific time in the future.
If a RSU is paid in the form of the company's stock, the recipient of the restricted stock unit does not have an ownership interest in shares of the company's stock unless and until shares are delivered in settlement of the award.
For further information, see Practice Note, Stock Options and Other Equity Compensation: Restricted Stock Units (www.practicallaw.com/0-501-9297).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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