This excerpt taken from the VRSN DEF 14A filed Apr 10, 2006.
Restricted Stock Units or Performance Shares
In general, no taxable income is realized upon the grant of a restricted stock unit award or an award of performance shares. The participant will generally include in ordinary income the fair market value of the award of stock at the time shares of stock are delivered to the participant or at the time the restricted stock unit or performance shares vest. VeriSign generally will be entitled to a tax deduction at the time and in the amount that the participant recognizes ordinary income.