The Basics of Equity Compensation

Congratulations!

You have completed ERI DLC Course 20: The Basics of Equity Compensation Plans.

You should now be able to:

  • Recognize the main types of equity compensation
  • Identify the pros and cons of stock options, restricted stock, stock appreciation rights, phantom stock, restricted stock units, and employee stock purchase plans from an employer and employee point of view.
  • Differentiate between incentive stock options and nonqualified stock options
  • Specify how equity compensation plans benefit granting organizations and participants
  • Differentiate between common vesting methods
  • Identify tax requirements for equity compensation plans