For instance, If John's vesting schedule consists of 5000 Rsus over two years and he resigns after 12 months,
he forfeits 2,500 Rsus.”.
To give Madeline an incentive to stay with the company and receive the 1,000 shares,
it puts the Rsus on a five-year vesting schedule.
Rsus will vest at some point in the future and,
unlike stock options, will have some value upon vesting unless the underlying company stock becomes worthless.
Rsus aren't eligible for Internal Revenue Code(IRS)
Section 83(b) Election, which allows an employee to pay tax before vesting, as the IRS doesn't consider them tangible property.
Rsus aren't eligible for the Internal Revenue Code(IRC)
83(b) Election, which allows an employee to pay tax before vesting, as the Internal Revenue Service(IRS) doesn't consider them tangible property.
Because the company thinks Madeline's skill set is valuable and hopes she remains a long-term employee,
it offers her 1,000 Rsus as part of her compensation, in addition to a salary and benefits.