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Single-trigger RSU

Also called: single trigger

In one line

An RSU that converts into shares on time-based vesting alone, without needing a liquidity event.

In plain English

Less common at private companies, single-trigger RSUs settle into shares as they vest. That can mean owning shares (and owing tax) before there's any way to sell them.

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

You receive the toy the moment you've helped enough — even if the shop to sell it isn't open yet.

Why it matters when you sell

Single-trigger settlement can create a tax bill on illiquid shares, making a secondary sale (if allowed) important for covering it.

Related terms

Double-trigger RSURestricted stock unit (RSU)Ordinary income (equity)Sell-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.