Employment Law Attorneys

Equity1 min read

Equity is simply another tool to incentivize the employee to perform. Equity means ownership in the company. Equity can be provided as stock, stock options, restricted stock, etc. For public companies, equity ownership is determined by the market price for the shares. Equity awarded in private companies has value that is directly limited to what a small group of investors, namely the board and owners, want to pay. If you can determine the reasonable capitalization of the company, you can determine the market value for the shares.