What is the difference between restricted shares and stock options?

Restricted shares and stock options are both forms of equity compensation, but each comes with some conditions. Restricted shares can either be restricted stock units or restricted stock awards. Both involve vesting requirements. For instance, restricted stock awards deliver shares outright, along with the rights and privileges of a shareholder.

What is the difference between restricted stock and performance shares?

With both restricted stock and RSUs, vesting usually happens after a specified length of employment (in this article series, the phrase "restricted stock" includes RSUs unless RSUs are specified as well). Performance shares are not issued up front and are usually part of a long-term performance or incentive plan (LTIP).

What is the difference between restricted stock and vested stock?

The key difference is in how vested shares are calculated. With restricted stock, the company agrees to grant a set number of shares regardless of company performance. The number of shares granted in a performance stock program fluctuates depending on the performance of your company.