One of the exciting aspects of starting a new job is the compensation package offered. Restricted stock units, or RSUs, can be part of a compensation package. RSUs also extend beyond new employees and can be offered to existing employees to reward high performance. Additionally, they can improve overall compensation and share a company’s profits with employees. How Restricted Stock Units Work Restricted stock units are a type of company equity or compensation that gives employees shares in a company. They’re usually awarded to employees as part of a compensation package or to reward good performance. When a company does well, employees with RSUs benefit and can earn profit. Restricted stock units come with conditions that are different for each employer. Common examples include vesting periods and completing a set number of service years. Vesting periods are important to note since RSUs only have value once they’re fully vested. The requirements are usually implemented to encourage employees to stay at the company longer. If employees leave before the vesting period, they forfeit any RSUs that haven’t vested. That said, once RSUs are fully vested, they