Many companies offer stock-based compensation such as stock options, restricted stock units, and employee stock purchase plans to attract and reward employees. However, some employees don't fully understand these benefits and may miss out on the potential wealth-building opportunities they provide. It's important to research and consider the pros and cons of each type of compensation carefully to make informed financial decisions.
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.
