What types of equity grants should I declare in Remote Equity?

Article author
Temitope Olamolu
  • Updated

Equity compensation can look different across companies and countries. To help you stay aligned and compliant, here’s a quick guide to the types of equity grants that should be declared in Remote Equity for team members hired through EOR.

Stock Options (NSO)

A contract that gives the holder the right, but not the obligation, to buy a specific number of the company’s shares at a predetermined price, called the strike price or exercise price.

Other denominations include: Non-Qualified Stock Options (NQO), Warrants, and Share Options.

Virtual Stock Options (VSOP)

A contractual agreement that gives a team member a cash payment based on the increase in the company’s stock value when specific events occur, without granting actual stock ownership.

Other denominations include: Phantom Stock, Phantom Shares, Stock Appreciation Rights (SARs) settled in cash, and Phantom Units.

Restricted Stock Units (RSU)

A grant of company shares that a team member receives after meeting certain conditions, typically time-based vesting. No purchase is required to receive the shares.

Restricted Stock Awards (RSA)

A grant of company shares that are immediately owned by the team member but come with restrictions. These might include vesting periods or performance targets that must be met before the shares can be sold or transferred.

See also: How do I declare an equity grant in the Remote Equity App?

 

:warning: Important: Please note that failing to declare grants and exercises will result in a breach of our Terms of Service. It is essential to ensure all equity events are accurately declared in the platform.

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