Equity compensation

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).