Broker Check

Equity Compensation

Equity Compensation is a benefit provided by many companies to their employees. It’s a non-cash pay, investment representation of ownership in the company that allows employees to share in the profits. Often, you might find equity compensation is offered along with a below-market salary. You would usually see this with startup companies. There are different types of equity compensation, such as:

  • Employee Stock Options
    • Incentive Stock Options (ISOs)
    • Non-Qualified Stock Options (NSOs)
  • Restricted Stock Units (RSUs)
  • Employee Stock Purchase Plans (ESPPs)
  • Performance Shares
  • Stock Appreciate Rights (SARs)
  • Phantom Stock

Each of these types of Equity Compensation have their own set of rules and restrictions. More information about them can be found on this website. Not all equity compensation is equal, as some may include vesting requirements to receive the stock’s full potential. Click the compensation option that your company might be considering and learn more. You can also always contact me, and I’d be happy to walk you through your options.

For more information send me a quick email or call the office.

egerhard@barnumfg.com | (203) 513-6331