A Restricted Stock Unit (RSU) is an equity compensation granted by an employer to its employees which provides the right to receive a specified number of company shares on the completion of certain conditions. In general, these conditions include the employee remaining employed with the company for a minimum period and are known as “vesting requirements”. The financial accounting for RSUs is similar to that of stock options as the fair value at vesting date is recorded as compensation expense over the vesting period. RSUs also have the benefit of not diluting the current share count, unlike stock options. Ultimately, RSUs are a great way for companies to reward their employees without incurring additional costs or negatively affecting existing shareholder values.