Is RSU ia a part of annual salary or distribution over 4(vesting period)? Means for example suppose company mentioned ctc of 60 lakhs and out of them 30 lakhs are RSU vested over 4 years (25% each year), then on second year, how should I expect to receive RSU as "25% of 1st year + 25% of 2nd year" or just a 25% from 1st year and no new stock for 2nd year?
It may sound same like a stock option but there are differences. In RSUs, employees don't have to pay. In case of ESOPs, you get them at discounted rates, but you pay for them.
Is RSU ia a part of annual salary or distribution over 4(vesting period)? Means for example suppose company mentioned ctc of 60 lakhs and out of them 30 lakhs are RSU vested over 4 years (25% each year), then on second year, how should I expect to receive RSU as "25% of 1st year + 25% of 2nd year" or just a 25% from 1st year and no new stock for 2nd year?
Each year a part of your RSUs vest. Upon vesting they become your ownership and income for that year. Until it is vested, you don't own them.
Very well put together. - CrazyNaval's follower from TN.
Thank you.
Same like employee stock options
It may sound same like a stock option but there are differences. In RSUs, employees don't have to pay. In case of ESOPs, you get them at discounted rates, but you pay for them.