Over recent years, some of Silicon Valley’s leading private companies attracted staff by offering “restricted stock units” that are triggered when a company has a liquidity event, typically going public. Employees face a personal tax liability when RSUs vest, but staff are unable to sell any of these shares without the company launching a flotation.
“There is pent-up pressure among employees who had been promised an IPO in 2021 or ’22, but are now saying ‘RSUs don’t pay my mortgage or my kids’ college fund’,” said Cisco Palao-Ricketts, partner at law firm Goodwin Procter.
https://www.ft.com/content/9b6981cf-7444-4057-9791-b40ef1cdb5a0