02 / Equity explained
Understand the words in your award letter.
Explore shares, RSUs, options and employee purchase plans.
Educational tool
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Start with an award type
A plan name is a starting point. Your award agreement establishes its actual conditions and how it settles.
Grant, vesting, exercise, settlement and sale are different events. A plan may use only some of these stages.
How this component works
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Keep these distinctions in view
| Component | What it represents | What to establish |
|---|---|---|
| RSU | A conditional award, normally for shares; some settle in cash. | Conditions, settlement and relevant dates. |
| Option | A right to buy at an exercise price. | Price, exercise rules, leaver terms and expiry. |
| Purchase plan | A route to acquiring shares under plan rules. | Contributions, purchase mechanism and restrictions. |
| Owned shares | An existing holding with a changing market value. | Quantity, records, restrictions and exposure. |