In the last two episodes, I told you everything you needed to know about Job Offers and Salary Negotiations. Those episodes actually prompted quite a number of questions around stock-based compensation, a.k.a. Equity.
So in this episode, in order for you to feel more confident with this topic, I’ll try to cover everything you need to know about Equity Compensation, including the wonderful world of Stock Options, RSUs, ESPPs and SARs – and which fine print is associated with each of those stock types. We’ll also cover why more and more companies are shifting to stock-based compensation, and explore the philosophy behind this idea. Last but not least, I want to make a point around the difference between stock issued by private companies (non-listed or pre-IPO companies), and public companies.