In the tech and corporate world, Restricted Stock Units (RSUs) are used to align an employee’s interests with the company’s success. An RSU is simply a promise to deliver shares of the company’s stock to the employee at a future date, provided certain conditions (usually simply working at the company) are met.
Unlike stock options, RSUs always have value so long as the company’s stock does not drop to zero, because you do not have to 'buy' the shares at a strike price. Once the RSUs vest, they are essentially indistinguishable from cash bonuses paid in the form of shares.
Using the StressTest.pro Equity Simulator, employees can project the true after-tax liquid value of their RSU grants over a multi-year vesting ladder under various growth scenarios.