Performance, pay & rewards · Core

Equity compensation

Also called: share-based compensation, stock compensation

ELI5

Compensation delivered through shares, options or share-linked awards.

Used in conversation

“Can we test the claim about equity compensation against employee data and lived experience?”

Pitch context

You will see “Equity compensation” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 7

Direct term-level sources and supporting source families.

National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16
OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16