Equity Compensation

Equity compensation is any form of non-cash compensation that gives employees an ownership stake (or economic equivalent) in the company. Main types: stock options (ESOPs), RSUs, phantom stock, and ESPPs.

Equity serves two purposes: retention (vesting schedules keep people around) and alignment (owners think like owners). The challenges are complexity (tax varies by jurisdiction) and liquidity (private shares can't be easily sold).

For companies offering equity across multiple countries, a unified equity management platform becomes essential to track grants, manage multi-jurisdiction compliance, and keep employees informed about what their equity is worth.