equity-compensation

Vocabulary Word

Definition

The term 'equity compensation' refers to a non-cash payment that represents ownership in a company. It's like getting compensated with a slice of the company, which can include stock options, restricted shares, or other types of equity.

Examples in Different Contexts

In startup culture, 'equity compensation' is a common method to attract and retain talent by offering shares of the company. A startup CEO might say, 'We provide equity compensation to align our team's incentives with the company's long-term success.'

Practice Scenarios

Tech

Scenario:

Our team has been putting in incredible work on this project. It's important that we show them how much we value their contributions.

Response:

How about we introduce an equity compensation package? It could make the employees feel more connected to the company's success.

Startup

Scenario:

We need to ensure our team feels invested in our success. What if we could find a way to offer them a stake in the company's future growth?

Response:

If we can't match big companies' salaries, equity compensation can be our strong suit. It would give the staff a stake in our success.