We've had candidates ask questions about our equity grant process -- they're used to receiving stock options, and instead, we're granting restricted stock. What does this mean, exactly?
We grant restricted stock at this stage because it's almost certainly going to be very tax advantageous for you to get a stock vs. option grant. In a nutshell, you'll be able to file an 83b election with the IRS, which will set your basis and tax liability at today's company value, and then as we build value together, your gain will be taxed at the much lower long-term capital gain tax rate, instead of the much higher ordinary income tax rate typically associated with stock option grants.
As with all things tax-related, we recommend you check with your tax advisor for details on your specific situation. If you want to understand this in much more detail, you can read this post I wrote for Founders in FounderCulture detailing restricted stock vs. ISOs NSOs and the like: Explaining a Restricted Stock or Option Grant to Your New Hire