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Definition: Equity-based Compensation is a method of remuneration where key employees receive ownership stakes or rights to shares in the company as part of their compensation package. This form of compensation aligns the interests of such employees with those of shareholders by providing them with a direct stake in the company's performance and success. EBC can take various forms, including stock options, restricted stock units (RSUs), and employee stock ownership plans (ESOPs), each offering unique advantages and considerations. |
More on compensation and benefits: Broadbanding, Competency-based Pay, Efficiency Wage, Employee Benefits, Executive Compensation, more on compensation and benefits... MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program. We keep it short and provide links to high-quality websites where you can learn more about your topic.
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