Are restricted stock units included in diluted share count?
The Fully Diluted Share Count includes potential shares from Options, Restricted Stock, and Convertible Securities.
What is a restricted stock unit grant?
Restricted stock units are a way an employer can grant company shares to employees. The grant is “restricted” because it is subject to a vesting schedule, which can be based on length of employment or on performance goals, and because it is governed by other limits on transfers or sales that your company can impose.
Are RSUs included in fully diluted shares outstanding?
While restricted shares are transferred to the owners on the grant date, RSUs act as a promise to transfer shares subject to meeting specific conditions, and they are units rather than shares so are not included in the shares outstanding.
How is RSU grant price determined?
RSUs are assigned a fair market value at the time they become vested. In other words, if the company’s stock is valued at $20 per share at the time the RSU becomes vested, then the per-unit value of the RSUs is $20.
What is the grant date for RSUs?
RSU Grant Date means the date that the Committee first authorized the RSU Grant, as indicated on Attachment A. RSU Grant Date means, with respect to any one RSU Award, the grant date established by the Board at the time of grant of such RSU Award.
What is the difference between RSU and RSA?
An RSA is a grant which gives the employee the right to buy shares at fair market value, at no cost, or at a discount. An RSU is a grant valued in terms of company stock, but you do not actually get the shares until the restrictions lapse or vest.
How are RSUs accounted for?
RSUs – A Full Value Grant Restricted stock units are considered a total amount stock grant for the reason that the grant is worth the full value of the shares at the time of vesting. Under a set schedule, the company usually offers funds or accounts as part of the compensation package.
What can you do with RSU grants?
If you’re granted RSUs, you get to essentially own company shares without putting any money down (unlike when you are exercising stock options). So, when is the best time to sell your RSUs? If your company is public, the best thing to do is to cash them out as soon as they vest.
How are RSU grants taxed?
RSUs are taxed as income to you when they vest. If you sell your shares immediately, there is no capital gain tax, and you only pay ordinary income taxes. If instead, the shares are held beyond the vesting date, any gain (or loss) is taxed as a capital gain (or loss).
What is the difference between RSU and restricted stock?
RSU: Stock Options — Gives the holder the right to buy a company’s stock at a future date at a price established at the time of issue. Restricted Stock Units — Gives the holders a commitment to receive the value of a certain number of shares in the future without requiring payment upfront.
Is unvested restricted stock dilutive to diluted EPS?
If dilutive, the unvested restricted stock would be considered outstanding as of the later of the beginning of the period or the grant date for diluted EPS computation purposes. If anti-dilutive, it should be excluded from the diluted EPS computation.
How are contingent shares included in diluted EPS?
As noted in ASC 260-10-45-49, for year-to-date computations, contingent shares are included in diluted EPS on a weighted-average basis. That is, contingent shares are weighted for the interim periods in which they were included in the computation of diluted EPS. This methodology can result in a lack of comparability from quarter to quarter.
Are ESPP options included in diluted EPS?
Similarly, ESPPs are considered options to be included in diluted EPS using the treasury stock method because granting an employee the ability to purchase stock at a defined price through an ESPP is very similar to a conventional employee stock option with a vesting period.
Should RSUs be included in diluted EPS calculation?
The inclusion of RSUs in this quarter would be antidilutive, and, as a result, they should be excluded from the diluted EPS calculation. The EPS calculation is presented in the summary financial statements in Exhibit 1.