Question

The compensation associated with restricted stock units (RSUs) under a stock award plan is the number of shares represented by the RSUs multiplied by: Multiple Choice The book value of an unrestricted share of the same stock. The market price of a share of similar fixed income securities. The market price of an unrestricted share of the same stock. The book value of a share of similar stock.

Answer 1

Answer:

The market price of an unrestricted share of the same stock.

Explanation:

Restricted stock units (RSU) are defined as a type of compensation in shares that an employer will give to an employee.

Usually certain conditions or performance should be met before the employee gets this benefit. For example staying with the company for a number of years.

A vesting plan of distribution schedule is used to allocate the shares.

The value of the compensation will be the number of shares given by the RSU multiplied by the market value of unrestricted share of the same stock.

For example if an employee has RSU of 1,000 shares, and share value is $10

Value of RSU compensation = 1,000 * 10 = $10,000