What is the ruling on RSU that is awarded to employees based on their performance ?
What is the ruling on Restricted Stock Units (RSU) that is awarded to employees based on their performance? The employee does not buy them but they get it free. Is this the same as buying stocks and we have to minus the interest-based percentage from selling profit.
Answer: ِﺑ ْﺴ ِﻢ ا ِﷲ اﻟ ﱠﺮ ْﺣﻤ ِﻦ اﻟ ﱠﺮ ِﺣْﯿﻢ In the name of Allah, the Most Gracious, the Most Merciful
RSU awarded to employees based on their performance is permissible because there is no interest involved in the transaction itself. Furthermore, it is not the same as buying stocks, rather RSU are shares which the employer gives the employee instead of cash.
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah Darul Ifta Birmingham