Cash, Stock Options, or RSUs? How to Make the Right Choice

While my wife was working at Shopify, they introduced a flexible compensation program that allowed employees to decide how much of their pay would come in cash, stock options (ISOs), or restricted stock units (RSUs).

This was a game-changing approach to compensation—giving employees control over their pay structure based on their own financial goals.

But there was a downside.

Most companies don’t provide enough education on how to make the best decision. It reminded me of the shift from pension plans to 401(k)s—a great benefit in theory, but without guidance, employees are often left in the dark without a flashlight.

That’s Where This Guide Comes In

This guide is designed to be that flashlight—helping you navigate your cash vs. equity decision with confidence.

There’s no one-size-fits-all answer here. The right mix of cash, stock options, and RSUs depends on your financial situation, risk tolerance, and long-term goals. Instead of telling you exactly what to do, this guide provides a framework to help you make the decision that’s right for you.

Who Is This Guide For?

Even though I reference Shopify’s program, this guide is useful for anyone whose company gives them a choice between cash, stock options, and RSUs. While each employer’s plan may differ, this guide will help you understand the key factors to consider when making your choice.

A Quick Note

This guide focuses on how to decide between cash, stock options, and RSUs. It doesn’t cover the basics of equity compensation, like what ISOs, NSOs, and RSUs are.

If you need a refresher, check out my YouTube channel and blog, where I break down the fundamentals of equity compensation in more detail.