Equity compensation is a way to align the incentives of investors and executives. In economics, this is called a principal-agent problem; any time you need to get something done, you ask someone else (employee) to work on your behalf (shareholder investor.) In the "modern" stage of equity compensation, companies look to design appropriate ways to pay their employees using a combination of stock and a wide universe of equity instruments. But is this the only reason to pay in equity, besides alignment of incentives? Josh Schaeffer, director of Valuation and HR Advisory Practice at EquityMethods, starts our segment by addressing that very question.
Work experience in financial reporting or accounting, or an introductory course in accounting.
Josh Schaeffer, Equity Methods
Course Code : FMN1388-FM