Kaltura Equity Compensation Plan
A guide to thinking through your Equity Compensation as a Kaltura employee.
By Zac Murphy, CFA charterholder, CFP® professional. Last reviewed June 30, 2026.
Equity compensation in technology spans restricted stock units, stock options, performance-based grants, and refresh grants layered on initial offers. The combination can represent a substantial share of total compensation, which is why understanding how each component vests, taxes, and interacts with other accounts often becomes important relatively early in a career.
Common questions
What's the difference between RSUs and stock options?
RSUs deliver shares directly to the employee at vesting, with the value taxed as ordinary income at that point. Stock options grant the right to buy shares at a set price, and the tax treatment depends on whether they are incentive stock options or non-qualified options. The mechanics are meaningfully different.
How are RSUs taxed at vesting?
When RSUs vest, the value of the shares is generally treated as ordinary income, and employers typically withhold a portion of the shares to cover tax liability. The default withholding rate may not match an employee's actual marginal tax rate, which is one reason many higher-earning tech workers face underpayment situations at tax time.
What does concentration risk mean in the context of equity compensation?
Concentration risk refers to the financial exposure created when a large share of net worth is tied to a single asset or single employer. For tech employees with significant equity holdings, concentration risk includes both portfolio risk and income risk, since the same company provides both employment and a major investment position.
Equity compensation decisions involve tax planning, concentration management, and timing considerations that vary by individual circumstances. A financial advisor familiar with equity compensation can help work through the specifics.
Common challenges
RSUs, ISOs, and NSOs are taxed differently. RSUs are taxed as income at vesting. NSOs are taxed at exercise. ISOs can qualify for capital gains treatment but trigger AMT. Getting this wrong is expensive.
Concentration risk is real. Vesting grants plus ESPP plus 401(k) company stock can mean most of your wealth rides on one company. Diversifying takes planning around tax, blackout windows, and 10b5-1 considerations.
Exercise timing is a real decision. Early exercise, holding for long-term gains, or selling at vest each have tradeoffs across tax, cash flow, and risk. The right choice depends on the stock, your tax picture, and your other goals.
If any of these apply to your situation, the contact info below is the fastest way to start a conversation.
Have any questions about your equity compensation? Reach out to us by email or phone at the contact info below.
Email: [email protected]
Phone: (904) 654-3336
This page is for educational purposes only and does not constitute investment, tax, or legal advice.