# Restricted Stock Units (RSUs)

*Retirement & Benefits — Finicade finance glossary*

RSUs are company shares granted to employees that convert to real stock on a vesting schedule. They're taxed as ordinary income at vesting on the full value, whether or not you sell — the single most common source of unexpected tax bills in tech, since default withholding of 22% often falls short of a high earner's actual rate. Holding after vesting is economically identical to buying your employer's stock with cash.

**Also known as:** RSU, restricted stock, stock grant

**Related terms:** [Vesting](https://finicade.com/glossary/vesting), [Employee Stock Options](https://finicade.com/glossary/employee-stock-options), [Concentration Risk](https://finicade.com/glossary/concentration-risk), [Withholding](https://finicade.com/glossary/withholding), [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax)

Source: https://finicade.com/glossary/restricted-stock-units