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RSU better than cash bonus ?

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  • RSU better than cash bonus ?

    My company gives our RSU (Restricted stock units) every year after performance review instead of cash bonus. To me that is a big disadvantage because there is a vesting period for the RSUs and instead of getting reward after 1 year of hard work, you get the money in pieces for the next 4 to 5 years. I understand with RSU, I dont have to buy the stock and that if the stock price goes high I get lucky, if not, I am unlucky. But is there a real advantage in getting RSUs instead of cash bonus for tax purposes, in other words, do I have pay more taxes because I get a bonus as apposed to RSU

    Thanks

  • #2
    I personally prefer to have a bonus.
    There are usually conditions that have to be met with RSUs. They are good for the employer because they encourage employee loyalty.
    If you decide you would like to leave the company you may forfit the shares.

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