Securities Law Bulletin - So Many Options: An Overview of Equity Compensation and Incentives

This article examines common forms of equity compensation, specifically option plans, restricted share unit plans and deferred share unit plans. These plans use a company’s equity to compensate and incentivize employees. Each type of plan involves the issuance of new shares or the payment of amount of cash equivalent to the fair market value of such shares (cash-in-lieu of shares).