Avoid Million-Dollar Mistakes with Equity Compensation: Understand RSU’s, ISO’s & PSU’s

November 30, 2023

In this episode of FIN-LYT by EWA, Matt Blocki and Jamison Smith demystify the world of equity compensation and simplify this complex and valuable component of compensation packages. They define equity compensation as non-cash benefits offered to employees, typically in the form of ownership in the company.

Whether it’s stock options, restricted stock units (RSUs), or employee stock purchase plans, these incentives are commonly provided by public companies, private companies, and startups to align employee interests with company growth. Matt and Jamison discuss the why and how of equity compensation, emphasizing its role in retaining employees through vesting schedules that make it difficult for them to leave before the equity fully vests.

They highlight how this practice aligns employee compensation with the company’s success and can be a solution for companies with limited liquidity to offer cash salaries. Matt and Jamison also explore the intricacies of RSUs, non-qualified stock options, incentive stock options, and employee stock purchase plans, breaking down the tax implications and strategies for maximizing the benefits.

If you are seeking guidance and valuable tips for planning and optimizing equity compensation, this episode provides essential insights to navigate these topics with confidence and clarity.

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