Why Equity Compensation Matters
Learn more about the benefits of receiving equity compensation and how it can help improve your financial situation.Get the 101
Demystifying Equity Compensation
Get your questions answered on stock options, restricted stock units (RSUs), Employee Stock Purchase Programs (ESPP) and more.Get the 201
For example, you can control the timing of U.S. federal income tax events associated with stock options, Restricted stock units or RSUs have a taxable event when they vest and when you sell the underlying shares. While you can control the timing of the sale, vesting is dictated by your vest schedule. ESPP tax consequences depend on how long you hold your purchased shares before selling them.
In some cases, your employer may withhold part of your proceeds to cover a portion of your tax responsibility. Most equity is taxed at the federal, state and local levels. Work with a tax professional to understand your personal situation.