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When compared to ISOs, RSUs are less risky and not dependant on the stock price at any given time. They offer a more predictable revenue stream and guarantee at least some money as long as the company's stock has value by the vesting date.
Choosing stock options vs. RSUs is a tough decision, as there are positives and negatives to both. Generally, it boils down to the fact that RSUs are less risky, as they don't involve spending any money to get the stock. However, keep in mind that as an employee receiving either you likely won't have a choice.
Restricted stock units are a form of stock-based employee compensation. RSUs are restricted during a vesting period that may last several years, during which time they cannot be sold. Once they are vested, RSUs can be sold or kept like any other shares of company stock.
Like RSUs, NSOs can be granted to both employees and non-employees, whereas ISOs can only be granted to employees. With NSOs, employees must pay income tax on the difference between the fixed price and the current fair market value of the shares when they exercise their options.
RSUs do not give shareholders any dividend benefits. ESOPs give employees an option to purchase the shares after the vesting period. RSUs are directly allotted to the employees as shares once the restrictions are met. ESOPs typically come with a vesting period, after which employees can purchase the shares.