December 28, 2024FinanceUnderstanding RSUs and Stock OptionsA complete guide to equity compensation in tech.ShareEquity compensation is a major part of tech pay packages. Here's what you need to know. RSUs vs Stock Options RSUs (Restricted Stock Units) Granted shares that vest over time Less risky than options Taxed as ordinary income when vested Stock Options Right to buy shares at a set price More upside potential, more risk ISO vs NSO tax implications Key Considerations Vesting Schedule - Typically 4 years with 1-year cliff Tax Planning - 83(b) elections, QSBS Diversification - Don't over-concentrate Exercise Strategy - When to exercise options Consult a tax professional before making major equity decisions.Filed underFinanceStock OptionsRSUAuthorFurqan AgwanKeep readingView allInvesting Basics for Tech ProfessionalsFinance · January 4, 2025