What are restricted stock awards (RSAs) vs restricted stock units (RSUs)?

Restricted stock awards (RSAs) and restricted stock units (RSUs) are two types of restricted stock equity awards. Learn the differences between RSAs vs RSUs. Restricted stock awards (RSA) and restricted stock units (RSU) are two alternatives to stock options (such as ISOs and NSOs) that companies can use to compensate their employees.

What is a restricted stock award?

A restricted stock award is like an RSU. However, it comes with voting rights because the employee owns the stock immediately once it is awarded. In addition, though an RSU represents a right to stock, in some cases, an employee can elect to receive the cash value of the RSU instead.

Do restricted stock awards carry voting rights?

Since RSUs are not actually stocks but only a right to the promised stock, they carry no voting rights. An RSU must be exercised to receive the stock. Once converted, the stock carries the standard voting rights for the class of stock issued. A restricted stock award is like an RSU.