You may have noticed quite a few articles in the news recently about Equity Compensation—usually referring to some astronomical amount of compensation that a CEO is being rewarded. While those articles tend to sensationalize executive compensation, “equity” as compensation is quite common—and you may already be the recipient of one or more types of equity compensation.

Equity compensation is pay in the form of company ownership or stock. It can be awarded instead of, or in conjunction with, regular cash compensation. Many employers consider equity to be a way of aligning an employee’s interest with the goals and growth of the company. It could take the form of:

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