Performance shares vs RSUs

Performance share units (PSUs) vest on the achievement of targets — revenue, TSR, milestones — usually with a payout multiplier.

Payout ranges

PSUs commonly pay 0% to 200% of target. Plan around the low end and treat overperformance as a bonus.

Tax treatment

Identical to RSUs: ordinary income on the value delivered at vest, capital gains thereafter.

Planning implication

The uncertainty is in the quantity, not the tax. Revisit your withholding once the performance period certification is known.

This article is educational and not tax, legal, or financial advice. Talk to a CPA or tax advisor about your specific situation.

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