Equity 101

Fundamentals of equity compensation types and structures

Articles

Equity 101

Intro to Stock Comp

If you're brand new to stock-comp, start here!

Key Questions This Article Answers:

What is stock-based compensation, and why do companies grant it to employees?
What are the most common types of stock-based compensation?
What are the key parts of stock-based compensation, and why are they important?
How does stock-based compensation create value for an employee?
Equity 101

ISO Stock Option

Introduction to Incentive Stock Options (ISOs)

Key Questions This Article Answers:

What are incentive stock options (ISOs)?
What is a ISO qualifying/disqualifying disposition; and why does it matter?
Will I owe Alternative Minimum Tax (AMT) from exercising ISOs?
What are the pros/cons of ISOs?
Equity 101

NSO Stock Option

Introduction to Non-qualified Stock Options (NSOs)

Key Questions This Article Answers:

What are non-qualified stock options (NSOs)?
What are the pros/cons of NSOs?
Can my NSOs? be exercised early? If so, how do I do that?
Equity 101

Restricted Stock Unit (RSU)

Introduction to Restricted Stock Units (RSUs)

Key Questions This Article Answers:

What are restricted stock units (RSUs)?
Do I need to exercise my RSUs?
What is the difference between and single- and double-trigger RSU?
What are the pros/cons of RSUs?
Equity 101

Employee Stock Purchase Plan (ESPP)

Introduction to Employee Stock Purchase Plans (ESPPs)

Key Questions This Article Answers:

What is an Employee Stock Purchase Plan (ESPP); how does it work?
What are the different types of ESPPs, and how do they differ?
What is a lookback provision in an ESPP?
Should you participate in your company ESPP; what are the pros/cons?
Equity 101

Restricted Stock Award (RSA)

Introduction to Restricted Stock Awards (RSAs)

Key Questions This Article Answers:

What are restricted stock awards (RSAs)?
Do I need to exercise my RSAs? Can I?
Why should early exercise and file an 83(b) election for my RSA grant
How do RSAs and RSUs differ?
Equity 101

Phantom Stock

Introduction to Phantom Stock

Key Questions This Article Answers:

What is phantom stock; and how does it work?
What is the difference between single- and double-trigger phantom stock?
How do I exercise my phantom stock, and when/why would I want to?
Why do companies issue phantom stock versus other types of stock-comp?
Equity 101

Stock Appreciation Right (SAR)

Introduction to Stock Appreciation Rights (SARs)

Key Questions This Article Answers:

What is a stock appreciation right; and how does it work?
How do I exercise my SARs, and when/why would I want to?
Why do companies issue SARs versus other types of stock-comp?
Equity 101

Glossary of Terms

All the Jargon, Decoded

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