RSUs - Restricted Stock Units
The contributions and impact of employees is key to Shopify’s success. Our RSUs are intended to reward our employees for their impact and contribution as we build Shopify’s success story while reducing some of the downside risks of holding stock options.
RSU grants are promised in dollars (example $5,000 USD) and granted in units.
RSUs vest over 3 years, beginning on the grant date. 33% (or 1/3) on the 1 year anniversary and quarterly over the following 3 years.
Grants are made at the next available compensation committee meeting (usually once a quarter).
Number of Units
The RSU Amount is divided by the 5-day volume weighted average stock price as at the date of grant to determine the number of RSU’s being granted.