[phamilton]

RSUs are stocks. A grant of 1 RSU means that on the date it vests, the company will buy 1 share of its stock and drop it into your account at a major brokerage. It's considered compensation and taxed as income, though it's often withheld as bonus income.

[umanwizard]

My point was that inasmuch as they don't vest the same year they're granted, RSUs are nothing but a commitment that part of your compensation in the future will be in the form of stock.

If I grant you $1,000,000 in RSUs, vesting over 1000 years, is your annual income $1,000,000 ? No, it's $1,000.

[phamilton]

Agreed, but I don't see that mistake being made often.

Generally what happens is a laddering of grants. 100k over 4 years. Then a year later, another 100k grant. Then again the 3rd year. And again the 4 year. Once you hit that 5th year, you are indeed seeing 100k in stock each year.

[thedufer]

When people cite total comp, including RSUs, they only include the RSUs that vest in that year. At least, this is how the recruiters at the big companies talk about it, which is typically where total comp numbers come from. So a grant of $300k worth of RSUs vesting evenly over 4 years counts as $75k of compensation.