# What is Restricted Stock Units? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Operations  
> **Canonical Citation:** [https://spidits.com/startup-glossary/rsu](https://spidits.com/startup-glossary/rsu)

## Definition
Restricted Stock Units (RSUs) are equity-based compensation where an employee is promised shares of company stock in the future, subject to vesting and liquidity conditions.

## Architectural Mechanics & Deep Dive
Restricted Stock Units (RSUs) are equity-based compensation where an employee is promised shares of company stock in the future, subject to vesting and liquidity conditions.

## Industry Applications & Real-World Use Cases
Late-stage startup and public firm employee equity grants

## Frequently Asked Questions

### How do RSUs differ from stock options?
Options give the right to *buy* stock at a strike price, whereas RSUs represent actual shares granted directly once conditions are met.

### When do RSUs vest?
Typically over a time schedule, and often require a liquidity event (like an IPO) to convert to liquid shares.

## Related Terminology
- [esop](https://spidits.com/startup-glossary/esop)
- [vesting](https://spidits.com/startup-glossary/vesting)
- [strike-price](https://spidits.com/startup-glossary/strike-price)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*