Restricted stock award (RSA) is a type of equity compensation that grants an employee the company stock with certain restrictions. That is, an employee gets to own the shares of the company on the date that he/she accepts the grant and satisfies any purchase price requirements. Nonetheless, the shares will still be subject to vesting conditions. Restricted stock awards are considered restricted stock because the shares issued cannot be freely traded or transferred, which allows the company to stay in compliance with securities laws.