Definition Of Equity Grant

Today many companies are continuing to search for new ways to both motivate and compensate its employees without using cash.

Definition of equity grant. Equity can apply to a single asset such as a car or house or to an entire business. A grant is an award typically financial from one entity to another the latter typically an individual to facilitate a goal or incentivize performance. Essentially the receiver is being granted equity in something. An employee stock option eso is a grant to an employee giving the right to buy a certain number of shares in the company s stock for a set price.

An equity grant also referred to as equity compensation is a non cash payment provided to someone. Define equity grant agreement. So that brings me back to the definition of equity. Equity is measured for accounting purposes by subtracting liabilities from the value of an asset.

Meaning pronunciation translations and examples. Means any compensatory grant of stock options with respect to stock restricted stock stock appreciation rights or any other compensatory grant whether or not such grant is payable in stock the value of which is determined with reference to stock valuation. Means any grant agreement including the restricted unit agreements that the company or any of its subsidiaries has entered into with respect to the original issuance of units including for the avoidance of doubt any such agreement entered into prior to the reorganization flip merger and other reorganization transactions in respect of limited liability. In finance your equity is the sum of your assets for example the value of your house.

Although an entire book could easily be written on the subject of employee equity grants here are some of the initial questions and issues that employee equity grants frequently involve. Equity incentives to employees. For example if someone owns a car worth 9 000 and owes 3 000 on the loan used to buy the car then the difference of 6 000 is equity. The grant of equity to employees implicates issues across several areas of the law including tax securities corporate and contract law.

And if you work for a publicly traded company like clorox or square chances are that you also have equity compensation. Equity compensation is non cash pay. We can talk about equity debate the definition of equity put on conferences around equity form a committee to analyze equity read white papers expounding on equity look at charts with kids standing on boxes illustrating equity put on a sock puppet show about equity etc.