How do you treat restricted stock units (RSUs) in the bridge?

employee compensation in the form of promised shares (vesting over time). Unlike options, they have no strike − on vesting they convert 1:1 into shares. Treatment: the diluted share count already includes unvested RSUs (often in the 'diluted shares outstanding' reporting). For valuation: use diluted shares, not basic shares. Pitfall: RSUs vest over several years − in forecast modeling, add new RSU tranches each year. Relevant at US tech with 4–8% annual RSU dilution; rarely a program at middle-market companies.