Restricted Stock Units (RSUs)
An equivalent term to Restricted Share Rights. They may also be called Zero Exercise Options (ZEPOs). A grant of units that are subject to service requirements for vesting. Vesting is typically over 1, 2 and 3 years, although more frequent vesting may apply in some industries, such as US Technology companies. Some companies and remuneration advisors incorrectly label Share Units subject to performance requirements as RSUs. These are more correctly labelled Performance Share Units (PSUs). Units are usually settled in stock but can be settled in cash of equivalent value. They may include dividend equivalents.
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