Can you explain the concept of equity- based compensation, such as stock options or grants, and how it is used to incentivize employees?
Can you explain the concept of equity- based compensation, such as stock options or grants, and how it is used to incentivize employees?
Can you explain the concept of equity- based compensation, such as stock options or grants, and how it is used to incentivize employees?
Equity-based compensation, such as stock
options or grants, is a form of non-monetary
compensation that provides employees with ownership
or a stake in the organization. It is used to incentivize
employees by aligning their interests with the
company's long-term success.
Equity-based compensation typically vests over a
specific period, encouraging employees to remain with
the organization and contribute to its growth. When
employees see a direct link between their efforts and
the potential for financial gain through equity, it
motivates them to work towards the organization's
objectives.