Restricted stock vs. RSUs: The critical difference
Abstract: At one time, stock options were the incentive of choice for public companies. Options remain an effective way to motivate and retain executives, but during the last several years other tools — including restricted stock and restricted stock units (RSUs) — have gained in popularity. This article describes the different tax advantages that each tool offers and the particular administrative advantages of RSUs. A sidebar notes that RSUs enable companies and employees to defer taxes by delaying delivery of shares after the RSUs vest — providing the deferral is timely.