Peter Chen

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Startup Employee Equity - Restricted Stock vs RSU

Aug 11, 2012

Restricted stock - “The company issues common stock to the employee and puts some restrictions on the stock. The restrictions typically include a vesting schedule and some limits on how the stock can be sold once it is vested.”

RSU - “A RSU is a promise to issue restricted stock upon the acheivement of a certain vesting schedule. It is a lot like a stock option but you do not have to exercise it. You simply get the stock like a restricted stock grant.”

http://www.avc.com/a_vc/2010/11/employee-equity-restricted-stock-and-rsus.html

#startups #equity #stock #stock-options

  1. Startup Stock Options - When to make an 83b election?

    Aug 10, 2012

    “…the tax rules for restricted stock provide both an advantage and a disadvantage when compared to the rules for vested stock. If you don’t like the trade-off, you can make the section 83b election. When you do, you’ll be treated (mostly) as if you received vested stock…”

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    #startups #stock #stock-options