Equity-based Compensation

Equity-based compensation is a way companies reward employees by giving them ownership stakes, such as stock options or shares, instead of or alongside regular salary. This aligns employees' interests with the company's success, as they benefit from growth in the company's value. It is especially common in startups and tech firms, motivating employees to perform well and stay committed, with the potential for financial gain if the company does well. Essentially, it turns employees into partial owners, sharing in the company's progress and profitability.