How to read your RSU agreement

RSUs look simpler than options — no strike price — but the agreement hides the two things that matter most: when they settle into shares and when you're taxed. Here's what to find and what it means.

What to find in an RSU grant

What to find	Why it matters
Number of units & vesting schedule	How many shares you earn and when.
Single vs double-trigger	Double-trigger needs both time-vesting and a liquidity event (IPO) to settle — common at private companies.
Settlement date	When units become actual shares — and when the income tax lands.
Withholding method	Usually sell-to-cover or net shares; often under-withholds for high earners.
Transfer restrictions / lock-up	Whether you can sell, and any post-IPO lock-up.
Treatment on leaving	Vested-but-unsettled units can be forfeited in some plans — check.

The clause that catches people out

At a private company, double-trigger RSUs don't become shares when they time-vest — they wait for an IPO or acquisition, then a backlog settles all at once, and the income tax lands with it. Find whether yours are single or double-trigger; it changes when (and whether) you owe tax, and what happens if you leave before the liquidity event.

Work out the tax before it lands

When RSUs settle they're taxed as ordinary income, and the standard withholding often falls short. The free RSU withholding-gap calculator estimates what you'll actually owe; the post-IPO playbook covers the sell-vs-hold decision.

Frequently asked questions

When am I taxed on RSUs?

When they settle into shares — which at a public company is usually at vest, and at a private company is often only after a liquidity event (IPO) for double-trigger grants. The value at settlement is taxed as ordinary income, whether or not you sell.

What's the difference between single and double-trigger RSUs?

Single-trigger RSUs settle on time-vesting alone. Double-trigger RSUs need two things — time-vesting AND a liquidity event such as an IPO — before they become shares. Private companies use double-trigger so employees aren't taxed on illiquid shares they can't sell.

Do I lose my RSUs if I leave before an IPO?

It depends on the grant. Unvested units are usually forfeited. For double-trigger RSUs, units that have time-vested but not yet settled (no liquidity event) can also be forfeited under some plans. Check the 'treatment on termination' clause.

Get the numbers before you decide

Free, no sign-up: estimate what your stake is worth, the cost to exercise, and whether you can sell.

Value my equity (free) → · All free tools → · Glossary →

When you're ready to go deeper, there's an optional Equity Toolkit and Report.