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Equity compensation, also known as share-based compensation, is a type of non-cash pay that a company offers to employees to partake in ownership of the firm. Some examples are stock options, restricted stock, stock appreciation rights (SARs) and ESPPs.
Equity compensation is non-cash pay that is offered to employees. Equity compensation may include options, restricted stock, and performance shares; all of these investment vehicles represent ownership in the firm for a company's employees. At times, equity compensation may accompany a below-market salary.
An equity incentive program offers an employee shares of the company they work for. Shares can be awarded through stock options, stocks, warrants, or bonds.
Typical range is between 5% and 20% of the company's fully diluted capitalization.
An equity incentive program offers an employee shares of the company they work for. Shares can be awarded through stock options, stocks, warrants, or bonds. Stock options are the most common and recognizable form of employee equity.