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Equity compensation is a valuable supplement to your paycheck, providing potential for increased compensation through company ownership. Your equity becomes more valuable when the stock price goes up, but can also decrease in value. Understanding the various types of equity compensation plans, such as stock options, restricted stock awards, and restricted stock units, is crucial for maximizing your benefits. Stock options give you the right to buy stock at a set price, while restricted stock awards and units are grants of company stock subject to certain restrictions.