Equity compensation: Understanding your options

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.

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The views expressed in the infographic are those of the author and/or person interviewed and do not necessarily reflect the views of Silicon Valley Bank, a division of First-Citizens Bank and First Citizens BancShares, Inc. The materials on this website are for informational purposes only, are subject to change and do not take into account your particular investment objective, financial situation or need. Since each client’s situation is unique, you should consult your financial advisor and/or tax planning professional before acting on any information provided herein.