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Double-trigger RSU

Also called: double trigger, double-trigger vesting

In one line

An RSU that only turns into shares when two conditions are met: time-based vesting and a liquidity event such as an IPO.

In plain English

Most private-company RSUs are double-trigger: you can be fully time-vested yet still hold nothing until the company exits. The second trigger protects you from being taxed on shares you can't sell.

If you were explaining it to a 5-year-old

You've earned the toy by helping enough — but you only actually receive it once the shop opens its doors. Two things must happen.

Why it matters when you sell

Double-trigger RSUs usually can't be sold in a secondary, because the shares don't exist for you until the liquidity event fires.

Related terms

Restricted stock unit (RSU)Single-trigger RSULiquidity eventSell-to-cover

Put it to use

RSU tax calculator

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.