Key takeaways
- There are two types of equity compensation that are usually offered to employees: the Incentive Stock Option and the Non-Qualified Stock Option.
- Each employee stock option has unique tax obligations that must be followed, so be aware of the specific regulations to be fully prepared.
- Very often, the financial upside of an employee stock option can be significant if you know the optimal time to take full advantage of it.
![10 Essential equity compensation basics for startups. png](/contentassets/b9dffcca638949e8822619ff97d4001c/10-essential-equity-compensation-basics-for-startups.png)