Performance Share Units, on the other hand, are also a form of stock-based compensation but with a key difference. The award and the number of shares an employee receives depend on meeting certain performance criteria, typically tied to the company’s financial goals or stock performance.
What are restricted stock units & performance share units?
In the world of corporate compensation, especially in publicly traded companies, Restricted Stock Units (RSUs) and Performance Share Units (PSUs) are two primary forms of stock-based compensation awarded to employees.
What are performance share units (PSUs)?
Performance Share Units are a type of equity-based compensation granted to employees, typically executives and senior managers, that are earned and converted into company shares. It is based on the achievement of specific performance goals over a predetermined period.
