3
Common Startup
Equity Goals
Compensation
The value of stock options can play
an important role in a company's total
compensation package. Offering equity to
employees can be especially valuable for small
companies and startups competing for talent
with larger, more established companies that
may be able to offer higher salaries.
2
Retention
Most stock options come with vesting
requirements, which means employees must
stay with a company to experience the full
benefits of their equity awards. That's why
companies may find equity compensation one
of many useful tools for retaining valuable
employees and motivating them to help the
business grow.
2
Hiring
There's a lot of competition for top talent and
offering equity awards may make a company
more attractive to potential employees.
Companies design equity compensation
plans to achieve goals, which are often
informed by their stage of growth, size,
and tenure in the market.
Here are some primary business
needs that equity compensation can
help address:
What Are Your
Company's Common
Shares Worth?
Public companies are valued by
the price their stock trades at in
the market, but private companies
don't have this luxury. When you
start issuing equity in the form of
stock options, a 409A valuation is
often required.
Shareworks by Morgan Stanley
offers a fast and transparent
409A service that's lead by a
team with 60+ years of combined
experience in 409A valuations.
Our valuations team can provide
you with a professional and audit-
ready valuation at every stage of
your growth.
1
2
"FAQ: What Being Offered Equity In a Company Really Means." Indeed. 2021.
https://www.indeed.com/career-advice/pay-salary/being-offered-equity-in-a-company MORGAN STANLE Y AT WORK
