What happens to vested RSUs when ‘issuance’ or ‘release’ of shares is deferred?
When restricted stock units (RSUs) have vested, but the employee chooses to defer the "issuance" or "release" of the shares, two key questions arise: Are these RSUs no longer considered outstanding shares? And should these vested but unissued/unreleased shares be counted toward common shares outstanding? Based on current rules, this article provides clear answers to the above questions.
If a restricted stock unit (RSU) has vested, but the employee wants to defer the “issuance” or “release” of the shares, my two questions are:
- These RSUs would no longer be considered outstanding, correct?
- Would these vested but non-released, non-issued shares be considered regular outstanding shares?