Restricted Stock Unit
A restricted stock unit (RSU) is a grant to an employee valued in terms of company stock. No actual stock is issued at the time of the grant. Instead, the grant of stock or its cash equivalent is deferred until the restricted stock units vest, which is based upon a set date or an occurrence described in a restricted stock unit plan or agreement. Once the vesting requirement is satisfied, the company ordinarily distributes the shares or their cash equivalent to the employee; however, the distribution may be deferred in some plans. Generally, the employee forfeits restricted stock units if the employee leaves the company before the restricted stock units vest.