Equity Compensation

Equity compensation is a form of non-cash pay that gives employees an ownership stake in the company, typically through stock, stock options, or restricted stock units (RSUs). It aligns employees' interests with the organization's long-term success, since the value of their compensation grows alongside the company's performance. Startups and growth-stage companies often rely on equity compensation to attract and retain top talent while conserving cash — making it especially common in executive offer packages, where it can represent a significant portion of total compensation.