Equity plans provide non-cash pay in the form of options, restricted stock and performance shares that represents ownership in the firm. Equity compensation allows employees to share in the firm’s profits via appreciation and can encourage retention, particularly if there are vesting requirements.
Equity PensionA pension plan providing benefits, partially at least, which varies according to the success of the investment in common stocks (or other investments). The equity part of the pension benefit is intended to provide benefits that grow as the rate of inflation rises.
Equity MethodAn accounting technique used by an investor who owns 20% to 50% of the voting shares / voting common shares. See cost method and consolidated subsidiary accounting.
Planning Compensation Incentives That Maximize Workforce Engagement
Download This White PaperPlanning Global Compensation Budgets for 2024 - March Updated
Download This White PaperAccess a small portion of our data and experience our Assessor Series at your own pace.
Common Compensation Terms and Formulas