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The US federal tax laws do not generally address the level of approval required for equity awards, but the tax rules that govern the qualification of so-called incentive stock options require that the options be granted under a shareholder-approved plan.
At the time of Vesting/Purchase: In RSUs, you don't pay anything to purchase shares. You just get it as part of the vesting schedule. So the market value of the shares at the time of vesting is considered as income and taxed ingly. In ESOP (and ESPP), the purchase price (or discount) of shares is pre-decided.
Yes, you will owe taxes when you sell your shares, but you shouldn't let the tax tail wag the investment dog. With RSUs, you will owe taxes the day they vest anyway. With ESPP shares, you will owe taxes on the discount regardless and if you have a gain, it will be taxed at the more favorable capital gains rate.
RSAs and RSUs are both restricted stocks but they have many differences. An RSA is a grant which gives the employee the right to buy shares at fair market value, at no cost, or at a discount. An RSU is a grant valued in terms of company stock, but you do not actually get the shares until the restrictions lapse or vest.
In SAR scheme, the employee is entitled to a share in the growth of the company (paid in cash or equivalent). However, he/she is not allotted any shares, whereas in ESOP the employee is allotted the shares (and thus the benefit in growth of the company).
ESOPs involve the option to purchase company shares at a predetermined grant price, providing potential profits. On the other hand, RSUs are restricted stocks that employees receive as compensation and can be sold after a vesting period or upon achieving specific milestones.
When you're granted stock options, you have the option to purchase company stock at a specific price before a certain date. Whether you actually purchase the stock is entirely up to you. RSUs, on the other hand, grant you the stock itself once the vesting period is complete. You don't have to purchase it.