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Equity compensation is another way for your employer to increase your overall compensation by giving you a stake in the company. As a company owner, you benefit when the stock price goes up, making your equity more valuable. However, stock prices can also decrease. It's important to understand your equity compensation plan, as there are different types such as stock options, restricted stock awards, and restricted stock units. Each plan has unique terms and conditions that you should be aware of to maximize its benefits.