Contracts, Business & Corporate Law Blog
Equity Compensation 101: Navigating Stock Options, Restricted Stock Awards (RSA), and Restricted Stock Units (RSU)
In this article, I provide an in-depth analysis of equity compensation structures commonly used by U.S. companies, focusing on stock options, Restricted Stock Awards (RSAs), and Restricted Stock Units (RSUs), including the legal frameworks governing these instruments, vesting mechanisms, section 83(b) elections, IRC Section 409A compliance, the distinctions between Incentive Stock Options (ISOs) & Non-Qualified Stock Options (NSOs), and the strategic use of equity compensation across different company growth stages.