Equity Incentive Plan Terms Checklist (Public Company)

Summary

Publicly owned companies may offer compensation incentives to executives and other key employees through awards or grants of equity in the company. While equity compensation plans can be designed in different ways, often they include the provision of stock options, restricted stock units (RSUs), restricted stock shares or performance units, and perhaps employee stock purchase plans. The plan is designed to give employees, often focused on executive employees, a stake in the financial success of their company, and provide additional financial benefits beyond salary and bonus.