RVP Bhim Bastola

03/18/2026

07/14/2025

Are you familiar with restricted shares and stock options? These are two types of equity compensation that can greatly benefit employees. However, both come with certain conditions that you should know about.

► Restricted shares can take the form of either restricted stock units or restricted stock awards. These involve specific requirements that must be met before the shares can be fully owned. For example, restricted stock awards provide the employee with actual shares and all the rights and privileges of a shareholder. This means they can receive dividends and even vote at the annual meeting. However, the company does have the option to buy back any unvested shares if the employee were to leave the company.

✓ On the other hand, stock options offer employees the opportunity to purchase a specific number of shares in the future at a pre-determined exercise price. Just like restricted shares, there are vesting requirements that must be met before the options can be exercised. If and when the company's stock price exceeds the exercise price, the employee can reap the rewards.

Both restricted shares and stock options are valuable forms of equity compensation that can potentially provide a major boost to an employee's financial well-being. It's important to understand the intricacies of each in order to fully take advantage of their benefits.​