Equity compensation is pay in the form of company ownership or stock. It can be awarded instead of, or in conjunction with, regular cash compensation. Many employers consider equity to be a way of aligning an employee’s interest with the goals and growth of the company. It could take the form of: Restricted Stock, Stock Options, Employee Stock Purchase Plans, Stock Appreciation Rights, and Phantom Stock. We will focus on the most common types, Restricted Stock and Stock Options, looking at the top factors to consider.