Vega Equity is now Xumane
Attract, Retain, Win with Strategic RSUs

Attract, Retain, Win with Strategic RSUs

Attract and retain top talent: Create custom RSU program with KPIs, data analytics, and performance tracking, ensuring an optimum growth for your organization.

RSU
RSUs

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
Grant Date

Specific number of shares offered to the employees.
Vesting Schedule
Vesting Schedule

The period required to earn ownership of the shares. It's common for vesting to happen gradually, like 25% per year over 4 years.
Vesting Date

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

They are taxed as ordinary income on the vested shares' value on the vesting date. Think of it as a bonus tied to.
Holding Period

Gains (or losses) on shares held for over a year are taxed as long-term capital gains. Shares held less than a year are taxed at short-term capital gains rates.
No Rights Until Vesting

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

Tax implications for RSUs
Why choose RSUs?
What sets Xumane Equity apart?
  • Streamline RSU grant setup process and administration
  • Customize vesting schedule, get notifications and monitor status
  • Offers education about RSUs, vesting, and tax implications
  • Automate complex calculations mitigating delays and errors
  • Keep employees informed and invested with centralized dashboard.
  • Ensure financial alignment, data protection and regulatory compliance
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