restricted stock award


Shares of stock given to an employee with certain stipulations that limit the employee's rights regarding the shares until he or she has been employed by the company for a certain amount of time. Employees possessing restricted stock may also be awarded certain rights associated with the shares, such as dividend payments and voting rights, but it may take several years for an employee to be granted all the rights provided to shareholders.

Use this term in a sentence

You may want to offer a restricted stock award as a bonus to show your employees you value what they do for you.

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Our company CEO received a bonus of a restricted stock award in gratitude for the incredible year our company had just posted.

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Susan was excited that her 10 year anniversary with the company was approaching because she would no longer be limited to restricted stock awards and, instead, could truly reap the benefits of company shares.

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restricted stock restricted surplus