Resources Connection Equity Compensation Plan
A guide to thinking through your Equity Compensation as a Resources Connection employee.
By Zac Murphy, CFA charterholder, CFP® professional. Last reviewed June 30, 2026.
Equity compensation in services and staffing is most common at the corporate and senior management levels of large publicly traded employers. Restricted stock units are the most common form, with performance share units and stock options used at senior levels in some cases.
Common questions
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 the recipient's actual marginal tax rate.
What are performance share units?
Performance share units vest based on the achievement of specified performance conditions, such as revenue growth, earnings targets, or relative shareholder return, often measured over a multi-year period. The number of shares ultimately received can vary based on performance against the stated targets.
What does concentration risk mean in this context?
Concentration risk refers to the financial exposure created when a large share of net worth is tied to a single asset or single employer. The implications depend on the share of net worth in company stock, time horizon, and personal preferences around concentration.
Equity compensation decisions involve tax planning, concentration management, and timing considerations. 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.