Summary
When accepting a job offer, it is important to understand how to take advantage of the rewards of stock benefits while mitigating the risks. This short Harvard Business Review article reviews stock options and Restricted Stock Units (RSUs). Stock options allow you to purchase shares in your company’s stocks at a predetermined price, also known as a strike price, for a limited number of years. Restricted stock units (RSUs) are the most common type of equity compensation and are typically offered after a private company goes public. Like stock options, RSUs vest over time, but unlike stock options, you don’t have to buy them. Just like your cash salary, you should negotiate your equity compensation. Companies typically issue a grant of options or RSUs when you first sign a job offer.