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an equity incentive plan is a way of offering compensation that is exempt from registration of securities it comes in many forms and has several requirements and guidelines so lets take a look how an equity incentive plan can be beneficial for your company equity incentive plans are used to compensate service providers in the early stages companies use equity to compensate key individuals in lieu of cash until they get off the ground equity is a great way to attract talented professionals to your company and it builds team spirit while keeping your company financials in good position caution must be taken to avoid giving too much of your equity away the types of roles for which you may grant equity are vast from your highest c-level employees to advisors web developers and other executives many service providers may be eligible to receive equity from your equity incentive plan the amount of equity you give each of your service providers depends on many things as you see here proper co