The Risk You Face If You Receive Equity Compensation
Equity compensation can be an extremely useful tool when it comes to building wealth. And just like any other tool you may use, you can learn how to leverage it to build something great — or you can mishandle it and end up with a poor outcome.
Some employers offer equity compensation in addition to regular paychecks or bonuses as part of the total compensation package for key, valuable employees. This is one way companies incentivize top performers to keep performing well, since employees are able to share in the success of the business as a whole. It can also act as a means for the company to retain talent (since most equity comp comes with a vesting schedule, meaning the employee must remain with the company for a set period of time before they can claim the equity they earned).
There are many
