Ownership shares or options to buy shares in your employer's company.
Equity compensation gives employees ownership stake in the company, usually through stock options (the right to buy shares at a set price) or restricted stock units (actual shares given over time). This aligns employee interests with company success.
Equity is particularly common at startups where it may comprise a significant portion of total compensation. Understanding vesting schedules, strike prices, and tax implications is crucial when evaluating equity offers.
When a job mentions equity / stock options, ask these to clarify:
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