Equity compensation

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Equity compensation is a type of payment that gives employees an ownership interest in a company. Noncash payment that represents an ownership interest in a company (for example, stock options and restricted stock).

Definition

According to the HRBoK Guide,

Equity compensation. A type of payment that gives employees an ownership interest in a company. Noncash payment that represents an ownership interest in a company (for example, stock options and restricted stock).