how do restricted stock units work for a company that isn’t public
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It will likely vary a bit based on the company. Stock options do something called vesting. Basically, there’s triggers in place so you only get the stock when certain conditions are met. Some really common ones are time (so you get the stock over a period 4 years as an example) or employee performance. But for startups, you can have additional triggers like an IPO, company being purchased or similar stuff. So you don’t technically have the stock until then.
I have RSUs for a pre ipo company. Mine basically act as an IOU. I get them based on years at the company, but they don’t actually exist yet. Once we get to IPO (or a few other events) they pop into existence and I get them.
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