Attract, Retain, Win with Strategic RSUs

Drive Talent & Growth with RSUs

Create custom Restricted Stock Unit (RSU) plans with KPIs, milestones, and data-driven equity allocation

RSUs are type of employee compensation program that help organization incentivise employee retention by offering them a share of company’s stock after completion of a specified vesting period. These shares are not owned by the employees at the time of granting, however, once they have been vested, the employee gains full ownership of RSU stocks and they can decide to keep them, sell them, or collect any earned dividends.

How do RSUs Work?

Grant Date

The official date when RSUs are awarded to employees.

Vesting Schedule

The time needed to earn share ownership, often gradual (e.g., 25% yearly over 4 years).

Vesting Date

The day you officially own the shares (they are no longer restricted).

Taxes

Taxed as ordinary income on the vesting date, like a bonus.

Holding Period

Gains on shares held over a year are taxed as long-term; under a year, as short-term.

No Rights Until Vesting

Until the shares vest, employees don’t have any rights to sell them or receive dividends.

The two types of RSUs to choose from

Feature	Single-Trigger RSU	Double-Trigger RSU
Vesting Trigger	Time-based (e.g., cliff vesting, service years)	Time-based and Exit Event (IPO, Acquisition)
Employee Ownership	Shares vest and become employee property over time	Shares vest upon exit event, employee may not own any shares until then
Employee Retention Incentive	Moderate (encourages staying for vesting period)	High (encourages staying until exit for full value)
Alignment of Interests	Encourages employees to contribute to company success	Strongly aligns interests, employees invested in long-term success

Tax implications for RSUs

Value of shares on vesting date: The shares are considered as ordinary income in the year it vests. Hence, they taxed in a similar fashion as their salary at marginal income tax rates.

Growth in value after vesting: If the employee decides to sell the shares at a later point, the profit earned between the vesting price as on vesting date and the selling price is taxed as a capital gain.

Why choose RSUs?

Simplicity and Transparency

RSUs are easy to understand, with a clear vesting schedule and value based on fair market price at vesting.
Aligned Incentives

RSUs tie employee success to company growth, boosting motivation, productivity, and long-term commitment.
Cost-Effective Solution

Avoid complexities of tracking option prices and dilution while streamlining accounting with RSUs.
Lower Employee Risk

No upfront costs or exercise decisions - shares vest automatically, eliminating financial risk for employees.

What sets Xumane apart?

Seamless, transparent, and intuitive RSU management in one place.
Streamline RSU grants, automate processes, and eliminate manual effort.
Customize vesting schedules, get real-time notifications, and monitor progress.
Educate teams on RSUs, vesting, and taxes with built-in guidance.
Avoid delays and miscalculations with automated equity management.
Ensure financial alignment, data protection, and regulatory compliance effortlessly.

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