What are restricted stock units?
Let us understand what are restricted stock units 1. RSUs are company shares granted to employees as part of compensation, but these come with restrictions of vesting over time.2. Employees are not required to pay anything to receive the shares as they are granted for free, subject to vesting.3. RSUs vest over a set period, commonly in annual or quarterly instalments, say, 20% each year over five years. Till such time, employees don't own the shares or have any rights.4. At the time of vesting the market value of RSUs is treated as income and taxed accordingly.5. At the time of sale, the gain or loss after vesting is taxed as capital gain or loss.Content on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
3 days ago
- India.com
This IT company CEO earns Rs 940000000, more than Noel Tata's TCS, Narayana Murthy's Infosys heads, he is…, company is…
HCLTech CEO C Vijayakumar earned USD 10.85 million (around Rs 94.6 crore) in FY 2024-25, making him one of the highest-paid executives in India's IT sector. His compensation surpassed that of the CEOs of larger rivals TCS and Infosys. The company's board has also approved an over 71 per cent increase in his current remuneration to USD 18.6 million (about Rs 154 crore) for the next financial year, according to the company's annual report. Vijayakumar's FY25 compensation places him ahead of his peers at India's top two IT firms. TCS, Infosys CEOs Salary For the same period, TCS CEO K Krithivasan's remuneration was Rs 26.52 crore, while Infosys CEO Salil Parekh earned Rs 80.62 crore. Vijayakumar's earnings also topped those of Wipro CEO Srinivas Pallia (USD 6.2 million or about Rs 53.64 crore) and Tech Mahindra CEO Mohit Joshi (Rs 53.9 crore). According to HCLTech's annual report, Vijayakumar's total remuneration in the fiscal year ended March 31, 2025, comprised a base salary of USD 1.96 million and a performance-linked bonus of USD 1.73 million. The largest portion of his earnings came from long-term incentives, with exercised Restricted Stock Units (RSUs) valued at USD 6.96 million. An additional USD 0.20 million was provided in benefits and perquisites. Who Is HCLTech CEO Vijayakumar? Vijayakumar, who took over as the CEO in 2016, is based in the US and draws his remuneration from HCL America Inc., the firm's wholly-owned US subsidiary. 'Under C. Vijayakumar's leadership, HCLTech's market capitalisation has increased from Rs 1,15,000 crore on March 31, 2016, to Rs 4,32,000 crore on March 31, 2025, reflecting a growth of 3.8 times since FY16. Over the same period, the market capitalisation of the other four leading Indian listed IT services firms among the top five has grown by approximately 2.5 times,' the company said. The company's board has approved a revised remuneration package for Vijayakumar, effective April 1, 2025. The proposed annual salary is set at USD 18.6 million, marking a 71 per cent increase from his FY25 earnings. The proposed structure significantly increases both fixed and performance-linked components. 'The revised compensation acknowledges C Vijayakumar's successful and long-tenured leadership as CEO, recognising his significant contributions to the company's growth and sustained performance over the years,' the report said. HCL Technologies posted a 9.7 per cent drop to Rs 3,843 crore in consolidated net profit for the June quarter, hurt by higher expenses and one-time impact of a client bankruptcy, but raised the lower end of revenue growth outlook for the full fiscal to 3-5 per cent (from 2-5 per cent earlier) on booking expectations in coming quarters. (With Inputs From PTI)
Economic Times
3 days ago
- Economic Times
What is a children's mutual fund? How does it work?
1.A children's mutual fund is an investment option that specifically caters to children and their financial goals like higher education, college tuition or wedding expenses.2. Children's funds typically have a lock-in period, restricting withdrawals for a certain period, encouraging long-term include a mix of equity and debt, and investors can choose higher debt or higher equity depending on the risk profile and investment horizon 4.T investment is done in the name of the child and is typically made by a parent or guardian for a funds offer deductions under Section 80C, and long-term capital gains (LTCG) may be tax-free up to a on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Time of India
3 days ago
- Time of India
What is a children's mutual fund? How does it work?
Academy Empower your mind, elevate your skills 1.A children's mutual fund is an investment option that specifically caters to children and their financial goals like higher education, college tuition or wedding expenses.2. Children's funds typically have a lock-in period, restricting withdrawals for a certain period, encouraging long-term include a mix of equity and debt, and investors can choose higher debt or higher equity depending on the risk profile and investment horizon 4.T investment is done in the name of the child and is typically made by a parent or guardian for a funds offer deductions under Section 80C, and long-term capital gains (LTCG) may be tax-free up to a on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
