Performance Stock: PSUs and PSAs
Learn about performance stock units (PSUs) and performance stock awards (PSAs), including how to enroll and how they may impact your taxes.

We'll cover:
How performance stocks work
How performance stocks are taxed
Cost basis and tax forms
Common questions about performance stocks
How performance stock is taxed
You are taxed when the shares are delivered, which is almost always at vesting. You'll be taxed again on any additional gains when you sell the shares.
PSAs
PSAs are taxed similarly to PSUs. However, PSAs also let you use the 83(b) election to report the stock award as income in the year shares are granted rather than when they vest. This election allows you to pay all the ordinary income tax upfront, so you won't be taxed again until you sell the shares. You need to make the election within 30 days of the grant.
Note: This section refers to U.S. taxation. International tax filers may have different obligations. Learn how taxation works in your country with our Global Tax Guide, which you can access while logged in to the Equity Award Center.
5 common questions about performance stock
Leaving your job almost always stops vesting. The only exception occurs in certain situations when vesting may be allowed to continue or may even be accelerated (e.g., death, disability, or retirement, depending on your plan and grant agreement).
Calculations used to value performance stock differ. Ask your company's plan administrator for information on how they calculate the percentage of shares you'll receive once they vest.
Performance stock is like another type of equity compensation called restricted stock. The key difference is in how vested shares are calculated. With restricted stock, the company agrees to grant a set number of shares regardless of company performance. The number of shares granted in a performance stock program fluctuates depending on the performance of your company.
Stock options give employees the right to purchase company shares at a certain price. Performance stock grants shares to employees usually at no cost.
Most companies don't allow employees to transfer performance stock to another person before the award vests and performance is certified. However, some may allow employees to designate a beneficiary in the event of their death.