Restricted Stock Units vs ESOP: Key Differences Explained | Xumane Guide
Understanding the difference between Restricted Stock Units vs ESOP (Employee Stock Ownership Plan) is crucial for both employers and employees when evaluating equity compensation strategies. At Xumane, we help companies and employees make informed decisions by breaking down these two popular stock-based compensation options. RSUs are company shares granted to employees that vest over time, offering a straightforward incentive plan with a clear market value upon vesting. In contrast, ESOPs operate through a trust and are typically used as retirement benefits, giving employees ownership over time without direct stock purchases. For more details read full blog