RSUs are taxed like income though, so from a tax perspective it’s pretty awful. Being early at a startup with options that you early exercise has far superior tax benefits.
One approach is to accomplish the tax withholding by withholding some of the RSU grant at each vesting. This seems pretty reasonable, since you aren't out any cash to pay the taxes on an illiquid asset.
You’re paying 40%+ in taxes for RSUs as soon as you vest. If you’re able to early exercise stock at a startup you owe minimal taxes when you join a company and then when you sell you’re just paying long term capital gains taxes which is a lot lower than 40%.
but with RSUs it’s just like income, which again isn’t a great tax treatment especially if you live in a state with state income taxes.