When do RSUs trigger a tax event?

RSUs trigger a tax event on the vesting date. You owe income tax on the value of vested RSUs (FMV at vesting) even if you do not sell the shares. This is different from options, where tax is deferred until exercise.

What is double-trigger acceleration?

Double-trigger acceleration means your remaining RSUs fully vest if two events occur: (1) the company is acquired, and (2) you are laid off within a certain period (usually 12 months). Without this protection, your unvested equity could be worthless after an acquisition.

When do RSUs trigger a tax event?

RSUs trigger a tax event on the vesting date. You owe income tax on the value of vested RSUs (FMV at vesting) even if you do not sell the shares. This is different from options, where tax is deferred until exercise.

What is double-trigger acceleration?

Double-trigger acceleration means your remaining RSUs fully vest if two events occur: (1) the company is acquired, and (2) you are laid off within a certain period (usually 12 months). Without this protection, your unvested equity could be worthless after an acquisition.

AI Contract Analysis

Restricted Stock Units Review — Understand Your RSU Grant

RSUs (Restricted Stock Units) are the modern way companies grant equity. Unlike options, RSUs are actual shares that vest over time. But RSU grants come with tax traps: vesting triggers tax events, and some companies impose repayment clauses. Our AI analyzes your RSU grant, explains tax implications, and flags unusual terms.

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