Equity compensation

A broad term referring to all forms of stock options your employer may offer you as an employee benefit. For example, equity compensation can be offered in the form of incentive stock options, non-qualified stock options, restricted stock units, restricted stocks, etc. Each type of equity compensation may differ in its tax treatment, as well as how and when vesting and exercise opportunities occur. The common goal is to reward you for a job well done and/or encourage you to remain an employee moving forward, while offering you a potential windfall stake if your company succeeds and its stock rises.