A Restricted Stock Unit (RSU) is a form of compensation offered by employers to employees in the form of company shares. Unlike regular stock options, RSUs are granted without requiring the employee to purchase them. Instead, the employee receives the shares after meeting certain conditions, such as staying with the company for a specific period or achieving performance goals. Once the conditions are met, the RSUs convert into actual shares of stock, which the employee can then sell or hold. However, the value of RSUs is subject to taxation at the time they vest, meaning employees may owe taxes based on the market value of the shares received.