Different types of equity awards carry different pros and cons. When designing an equity plan for your company, it is essential to consider what equity vehicles are right for your corporate structure and level of resources. In this post, we explores a few of the more popular equity types including stock options, restricted awards, and performance-based awards.
Executive compensation is a complex and controversial subject. Companies are often criticized for overpaying their executives, while shareholders are questioning the pay-setting process and the outcome it produces. This debate has triggered regulatory changes, which in turn have affected the composition of executive compensation packages. Over time, companies are offering less and less cash-based compensation and steadily increasing the portion of performance-based awards.