how do restricted stock units work for a company that isn’t public
In: 0
They function like normal RSUs. The RSU has a vesting schedule (when you actually get ownership of the shares), and as each tranche of stock vests, you pay taxes on the market value of that stock at that time. In cases where the stock isn’t publicly traded, the company will publish a fair market value for the stock that is used for all tax-related calculations.
Once vested, the stock is yours to do with what you wish. You can keep or sell it. If the stock isn’t publicly traded, you just have to find a private buyer for the stock, rather than go to an established marketplace for the sale.
Latest Answers