What are “Double-Vest” RSUs and Why Are They Making Headlines?

Double-vest restricted stock unit awards (Double-Vest RSUs)1 made headlines a few years after the end of the Great Recession when they were awarded by pre-IPO tech giants. Since that time, it has become increasingly common for mature startup companies and other high-value pre-IPO companies, primarily in the technology industry in the United States, to award Double-Vest RSUs in lieu of, or in addition to, stock option awards to attract and retain talent.2

Fast-forward more than a decade and Double-Vest RSUs are again making headlines, but this time because the expiration date of older Double-Vest RSU awards is approaching at the same time that many companies may be confronted with less access to capital markets, coupled with pent-up desire for liquidity by employees. READ MORE