Equity Compensation, Employee Stock Ownership, and Profits Sharing: Not at All Created Equally
Employee ownership has increasingly been in the news and is often pitched as a perk of joining a startup. In 2016, we applauded Chobani's grant of equity to employees, potentially worth six figures each. Chobani is just one of thousands U.S. companies doing this. We expect to see more and more corporations sharing ownership as a practical solution to issues of owner retirement and economic inequality.
Before adopting a program it's essential to understand the many options and varying tax implications for both companies and employees.