Restricted Stock Unit (RSU)

Investment Banking Glossary

Restricted Stock Unit — a contractual right to receive shares upon vesting (typically a 3–4 year time-based or performance-based schedule). Unlike options, RSUs have no exercise price, so they are always dilutive at 1-for-1 with no Treasury Stock Method offset; vested RSUs are added directly to Fully Diluted Shares Outstanding.

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