There is no value to the employee when issued. The RSUs will vest at some point in the future based on time passed or perhaps the achievement of a goal. They are then distributed as shares of stock but can be distributed as cash—although this is less common.

How are restricted stock units distributed?

Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes.

How is a restricted stock unit ( RSU ) valued?

An RSU is a grant valued in terms of company stock, but company stock is not issued at the time of the grant. After the recipient of a unit satisfies the vesting requirement, the company distributes shares or the cash equivalent of the number of shares used to value the unit.

How are restricted stock units issued to employees?

Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time. RSUs give an employee interest in company stock but they have no tangible value until vesting is complete.

When do restricted stock units become taxable in Ireland?

RSUs are fully taxable in the State if they vest at a time when the holder is Irish tax resident, without any apportionment by reference to any part of the vesting period during which holder was resident elsewhere. If the RSUs and the holder is no longer Irish resident, the RSUs are not taxable in Ireland, regardless of the fact

When do restricted stock units become non forfeitable?

Once your restricted stock units vest, your rights become non-forfeitable. You will receive actual payment according to the distribution schedule under your company’s plan. If you have not elected to defer distribution, the distribution date and the vesting date are the same.