Technically it t is dilution even though restricted. Once vested they become public . Stock dilution occurs when a company issues additional shares of restricted stock. Dilution results in changes to factors such as share price, ownership percentage, earnings per share and company voting rights. Determining the point at which employee stocks dilute the overall stock pool depends upon the type of employee stock in question. Dilution as a result of employee stocks may occur upon granting, exercising or vesting. So basically not current dilution but future dilution