RE:Monument Announces RSU Grants Whether it is RSUs or stock options , their granting always raises shareholde hackles.
RSUs are a company’s promise to give you shares of the company’s stock or the cash value of the company’s stock when they vest.
At current prices, vesting means in cash you will receive income..not capital gains..which is fully taxable.
If you are forced to take shares, the market price at vesting is used , and it is income which is fully taxable .
So, you now have common shares at market price at vesting which you have just paid taxes on.
you can hold those shares for capital gains if the price incenses .
So forcing 50% to take shares, saves us cash but not dilution .
The cash option means no dilution.