Restricted Stock vs. Stock Options (Everything You Need to Know)

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Restricted Stock vs. Stock Options (Everything You Need to Know) // I remember when I first started working in tech how confusing equity compensation was. I had no idea was restricted stock verus stock options were, what to consider when it came to startup equity, let alone how are stock options. TBH I wanted a video that would explain to me how stock options work. I sifted through everything out there I could understand, asked a lot of questions, and found my footing so I decided I wanted to make this video for you. I'll explain exactly what an RSU and stock options are, how they’re different including how to value them, how they’re taxed, and what happens to them when you leave a company. By the end, youll know the pros and cons of each of these equity compensation vehicles.
DISCLAIMER: I’m not a financial advisor or a tax professional - I definitely recommend if you’re structuring these or trying to figure out which is preferable for you, to consult with one of those professionals. I’m just sharing what I learned as a Tech Exec and tax payer :)
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31 май 2024

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Комментарии : 20

@JenniferBrick 3 года назад

Is there any key items or considerations I missed?

@ashleyblanchard8993 2 года назад

definitely interested in learning about whether or not to exercise your stockoptions if you choose to leave the company.

@nivama23 Год назад

Finally someone that was able to make me understand the difference between RSU and stock options. BRAVA!!

@JenniferBrick Год назад

Yay!!

@johnofardeal 3 года назад

This is a great video! Thank you so much! One step closer to deciding between the 2 job offers that I have. Keep up the good work!

@JenniferBrick 3 года назад

So glad it helped, friend!

@shivamjalotra9126 2 года назад

Wow so clear, watched a bunch of videos but this one was the best.

@rachelwashington5921 Год назад

this was so helpful!! thank you 😊

@jacobhernandez4347 2 года назад

thank you for this, very simple and to the point with some humor. Does the RSUs actually dilute shares?

@prachimishra4173 3 года назад

Thank you for the explanation :) If in my negotiations with a startup, I want to ask them for RSU's instead of ISO - what's a decent percentage of ISO's that I can ask for (relative to the number of ISO's being offered)? e.g. If they are offering me 1000 ISOs and I want RSU instead because of its simplicity, how many equivalent RSU should they offer?

@carloespinoza9610 2 года назад

Thanks for the video - one question: what date is considered for capital gains on RSUs? When the RSUs are granted or vested? I ask to figure out whether it'd be Short or Long Term cap gains.

@PMacMoraes 3 года назад

Oh I love this! It made everything much, much clearer! I'm just left wondering now what is the difference with regards to RSAs.

@JenniferBrick 3 года назад

Both are restricted stock, but RSAs are bought on the award date, there is not cliffs of vesting.

@PMacMoraes 3 года назад

@@JenniferBrick oh that's perfect! Thank you so much! No wonder RSAs don't seem to be common for companies to grant.

@JenniferBrick 3 года назад

@@PMacMoraes yeah the only time I've seen RSAs was as bonuses

@ashleyblanchard8993 2 года назад

what;s the diff between market value of a stock and sale price?

@hurigoTV 2 года назад

Hi Jenn, thanks for the video. I got a RSU from my company. So far I've received 250 stocks but, I can only cash out 164 stocks.....is this normal?

@khanman9027 2 года назад

Most companies generally take out some shares based on your tax rate, so you're not guaranteed the full amount of shares that have vested -- a fraction will be taken out automatically for taxes. If you hold onto your shares and sell at a later price, you may have to pay capital gains tax on the difference between the vested share price and the sold share price.