Restricted stock retains value if the share price should drop below the strike price. Stock option grants become worthless should the price drop. So there is a performance incentive to the you, the recipient, and not the pressure to take action to benefit in a given timeframe.
Impossible to advise you without knowing all the details, but generally, if you are going to stay with the firm, and are bullish on their future.... take the Restricted grant. Or a majority of the incentive in restricted.
Impossible to advise you without knowing all the details, but generally, if you are going to stay with the firm, and are bullish on their future.... take the Restricted grant. Or a majority of the incentive in restricted.
Although the above post is true in regards to stock vs options, the difference between restricted stock and unrestricted stock is more simple.
Generally restricted stocks are subject to certain conditions, the most popular is a time commitment. Often they will give you a certain number of shares, and they will vest or become yours after 1/3/5 years, or a percentage per year. If you quit or are fired before the specified time, you don't get the unvested shares.
Just call your HR department and ask, they'll know.
Generally restricted stocks are subject to certain conditions, the most popular is a time commitment. Often they will give you a certain number of shares, and they will vest or become yours after 1/3/5 years, or a percentage per year. If you quit or are fired before the specified time, you don't get the unvested shares.
Just call your HR department and ask, they'll know.
Thanks to both of you...
I split the two 50/50 and the stock of my company has dropped from $58 to $55 in two months...had a drug pulled and another generic.
Looks like I made the right choice splitting the two and I did find out I have to stay with the company 5 more years to become vested in the stock reward (for the restricted).
Thanks both for your input.
I split the two 50/50 and the stock of my company has dropped from $58 to $55 in two months...had a drug pulled and another generic.
Looks like I made the right choice splitting the two and I did find out I have to stay with the company 5 more years to become vested in the stock reward (for the restricted).
Thanks both for your input.
