A Restricted Stock Unit Clause Samples

A Restricted Stock Unit (RSU) clause defines the terms under which an employee or service provider is granted the right to receive company shares at a future date, subject to certain restrictions or conditions. Typically, RSUs are awarded as part of a compensation package and vest over a specified period or upon achieving certain milestones, meaning the recipient only receives the shares once these conditions are met. This clause serves to incentivize performance and retention by aligning the interests of the recipient with the long-term success of the company, while also providing a clear framework for how and when equity is earned.