Restricted stock units (RSUs) are now widely offered as employee compensation. They allow employees to acquire company stock over time. It's important to plan for RSUs as they can have tax implications and require decisions on whether to sell or hold stock. Employees should consider financial goals, stock concentration risk, and tax consequences when managing RSUs. It's advisable to work with a financial advisor for a comprehensive strategy.
Employee stock purchase plans (ESPPs) allow employees to buy discounted company shares through payroll deductions. While they can be beneficial, it's crucial to understand the rules and risks before opting in. Consider factors like tax treatment, contribution limits, and market performance. Some ESPPs offer significant discounts and flexible purchase options, while others may have stricter rules. It's essential to carefully review the plan documents and weigh the pros and cons before making a decision.
