4 Potential Problems with Equity Compensation, and How to Solve Them
by Paul V. Sydlansky, CFP
May 01, 2021
4 minutes
Non-cash compensation might not sound like a very good deal for you as an employee — but depending on the type, it can actually provide quite a boost to your net worth over time. Equity compensation is a type of “non-cash” comp that your company may provide, but that doesn’t mean it doesn’t have value.
Equity compensation provides you with shares of equity in your company, allowing you to take advantage of potential upside growth. If the company as a whole does well, then you, as an owner of some of the equity in the business, do too through a rising stock price that can help lift the value of your investment portfolio and provide a profit if
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