If you work for a company that offers equity compensation then you may notice, or have received, non-qualified stock options as a piece of the compensation structure. Of the two types of employee stock options, non-qualified options and incentive stock options, non-qualified stock options tend to be more prevalent.

Stock options may seem a little daunting because of the complexities and moving parts but rest assured I’m here to give you the basics on non-qualified stock options.

Restricted Stock Units (RSUs) are among the most popular forms of equity compensation today. They’re typically extended to key employees of a company in lieu of cash directly via a bonus, pay raise, or even a portion of salary.

If you have, or plan to receive, any sort of equity compensation then it’s important to know how your vesting schedule works and the concept of “vesting” in general.

Knowing the ins and outs of your vesting schedule can help with your strategic financial planning in order to make the best decisions possible.