Introduction
RSUs (Restricted Stock Units) are a form of equity compensation where your company promises to deliver shares to you once they vest. Unlike stock options, you don't pay anything to receive RSUs, they're awarded to you at no cost once the vesting conditions are met. However, vested RSUs don't automatically become shares you can access. You need to go through a release process to convert them into actual shares or cash.
The RSU settlement process is how your vested RSUs convert into shares or cash that you can hold or use. When your RSUs vest and a release window opens, you'll receive a notification in your Ledgy account prompting you to take action.
This guide walks you through the complete release process: checking your eligibility, selecting how you want to receive your RSUs (your settlement method), waiting for administrator approval, and completing any required payments. The specific steps and timeline depend on which settlement method you choose.
How are RSUs settled?
RSU release events - subject to withholding taxes
company will select a settlement method for you - or open a release election window (where you choose method)
Release election window
When RSUs vest notification card appears in your Dashboard. This notification indicates that you have vested RSUs ready for release and prompts you to take action.
release window is open before vesting date
To begin the release process, click the Respond button on the notification card. This will open the release request form where you can select your settlement method and proceed with the release.
When you click Respond, you must choose how you want to receive the value of your vested RSUs and how taxes will be handled. The available settlement methods are:
Method | What Happens | What You Need |
Hold all (Bank transfer) | You keep all shares and pay costs separately | Pay the costs via bank transfer |
Hold All (Payroll) | You keep all shares and pay costs separately | Costs deducted from your next payslip |
Sell All Shares | Sell enough shares to cover costs | No payment needed. |
Withhold to Cover (WTC) | Shares are withheld to cover costs and you keep the remaining shares | Nothing additional |
add sell to cover
In the example below, Hold all (Bank transfer) was chosen:
After selecting your settlement method, you'll see a transaction summary that displays the key details of your RSU release, including:
Number of shares
Share price
Estimated gross value
Estimated tax withholdings
Estimated net value
Review this summary carefully to ensure all details are correct before proceeding. This is your opportunity to verify that you've selected the appropriate settlement method and understand what you'll receive.
Once you're satisfied with the summary, confirm the transaction to submit your release request.
Then, you wave to wait for an Admin to release. The card will change to Awaiting release in your dashboard (see image for reference):
After you submit your release request, your company administrator must review and process the release. During this stage, the notification card in your Dashboard will change to show "Awaiting release".
The card status indicates that your request has been submitted and is pending administrator action. You don't need to take any action during this stage - simply wait for your administrator to process the release.
Complete payment (if applicable)
What happens next depends on the settlement method you selected:
For Hold all (Bank transfer) method
If you selected Hold all (Bank transfer), you'll need to complete a payment after the administrator processes the release. The notification card in your Dashboard will change to show "Payment required" in red, indicating that you must now make a bank transfer payment for the costs and taxes.
To complete the process:
Make the required bank transfer payment using the payment details provided by your company
Return to your Dashboard and locate the release request card
Click "Mark as paid" to confirm that you've completed the payment
After you mark the payment as complete, your administrator will verify the payment and finalise the release. Your shares will then appear in your Holdings.
For all other methods
If you selected Hold all (Payroll), Sell all shares, or Withhold to Cover, no additional action is required from you after the administrator processes the release. The process is complete:
Hold all (Payroll): The costs will be automatically deducted from your next payslip, and your shares will appear in your Holdings
Sell all shares: The shares are sold automatically, costs are covered, and any net proceeds (if applicable) are processed
Withhold to Cover: Shares are automatically withheld to cover costs, and your remaining shares appear in your Holdings
add sell to cover
The release is finalised without requiring any payment action from you.
After vesting
shares will need to be transferred from your company to Ledgy (by admin)
once shares have been settled into Ledgy's nominee - they will be available on your account
this process can take a number of days
if any restriction (i.e. holding periods) this will be applied
link article
then you can sell your shares - provided no restrictions
link to sell shares articles