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Paydays are great, but there can be much more to your compensation than a paycheck. Equity compensation is another way for your employer to increase your overall compensation while providing the potential for an even greater payoff giving you a stake in the company. As an owner, you benefit when the companys stock price goes up because your equity compensation becomes more valuable. Of course, like all stocks, the companys stock price can go down too. This means your equity compensation could decrease in value. Its important to know how an equity compensation plan works so you know what to expect. These plans come in many forms and each plan has unique terms and conditions. Understanding these can help you make the most of your plan. Common types of plans include stock options, restricted stock awards, and restricted stock units. Lets briefly look at each. Stock options are grants that give you the option or right, but not the obligation, to buy shares of the company stock on or b
