Courses / HR & Employment Law Basics
19. Equity grants basics
Defines stock options, RSUs, vesting schedules, and common terms to include in offer documentation.
Foundations of HR & Employment Law: Offer Letters, Contracts, and Compliance
Equity grants basics
Equity grants give employees an ownership stake in the company through instruments like stock options and RSUs, governed by vesting and documentation terms.
"I want hires to feel ownership, but I also need predictable timelines and clear legal terms in offers."
Equity grants are compensation that awards company ownership over time; common forms are stock options (right to buy shares later) and restricted stock units (promise to deliver shares). Vesting schedules, cliff provisions, exercise windows, and treatment on termination or change of control are key terms to include in offer documents.
"I want hires to feel ownership, but I also need predictable timelines and clear legal terms in offers."
Equity grants are compensation that awards company ownership over time; common forms are stock options (right to buy shares later) and restricted stock units (promise to deliver shares). Vesting schedules, cliff provisions, exercise windows, and treatment on termination or change of control are key terms to include in offer documents.