Equity compensation refers to granting partial ownership in a company as part of employee remuneration, aligning their interests with the company’s goals. This guide provides an overview of the complexities of equity compensation, including various forms like stock options and restricted stock, and aims to help both employees and employers navigate the intricacies involved in negotiations and decisions surrounding equity. It serves as a comprehensive resource for understanding the technicalities and potential pitfalls of equity compensation, emphasizing the importance of informed decision-making.