RVXOT - That's not the way I understand RSU's and options. Never been issued RSU's but have experience with options as part of a comp package. As far as I know there is no tax until the Option or RSU is actually exercised. Options are widely used in comp packages in the oil patch in Calgary. In every situation I've come across it is only the amount in excess of the exercise price that is taxable and only if you actually sell the units for more than the exercise price. If options or RSU's expire out of the money at expiry or within 30 days of leaving your employer then there are no taxes to be paid as no income or capital gain was actually  made. That has been my experience with options. I have no experience with RSU's. To me it makes no sense to be taxed on something that you may never be able to benefit from. I think fouremm may be the best person on this board to answer this question as my experience may now be outdated.

Just a little trivia. Just a few years ago before the oil price fell out of bed there was around $7 billion of unexercised options in the hands of oil company employees in Canada, most of them in Calgary. I wonder how many of those options were exercised and how many were held onto that ended up expiring under water. I know a few people that didn't exercise while they were in the the money that wished they did.

tada