What are Equity Incentive Plans?
Equity Incentive Plans are compensation programs that provide employees with ownership interests in a company, typically through stock options, restricted stock units (RSUs), or other equity-based awards. These plans are designed to align employees’ interests with the long-term success of the company by offering them a stake in the business’s financial growth and performance. Equity Incentive Plans are commonly used to attract, retain, and motivate employees, particularly in startups and growth-stage companies.