The Gift of Company Equity

John Anthony Almerino

December 23, 2021

The Gift of Company Equity

January 25, 2022

The Gift of Company Equity
Beyond its monetary value, equity compensation also provides meaning and value to the lives of a company’s workers and contributors.

Stock compensation is meaningful compensation. So long as it is done right, a good equity plan enables a company to give value not only to its workers but also to its contributors and other stakeholders. In this season of giving, providing equity is one of the greatest gifts that a company can give to those who contribute the most to its success.

The value of equity extends beyond its monetary worth as it also provides other forms of intangible benefits to both the giver and the recipient. In this blog post, we talk about how company equity can better serve the spirit of the holidays by exploring the unique “gifts” that it has to offer.

The gift of meaningful compensation

Everyone wants some money in their bank account. But cash is hardly meaningful compensation. Sure, you get to buy a few nice things with your year-end and holiday bonuses. However, compensation that is truly meaningful is concrete, sufficient, and uplifting.

Equity or stock-based compensation provides just that. In terms of monetary worth, it is truly meaningful. It is a form of compensation that has an inherent potential to grow in value. Rather than short-term profit, it's something that has a long-term future value with the ability to multiply based on the success of your company.

It is also uplifting in that equity compensation gives access to a mode of wealth creation that is not usually available to workers and employees. A company offering equity is not just paying compensation—it is also providing a rare and wonderful opportunity to change the recipient’s life for the better.

The gift of motivation and encouragement

A good equity plan should be able to proportionately reward workers and contributors. Those who contribute more to the company should be recognized and rewarded accordingly.

Equity compensation encourages and motivates people to do their best by showing them that their hard work is rewarded in proportion to the time and effort they spent. It’s a simple formula that increases the productivity of a company’s workforce and pool of contributors. More results and contribution, more equity rewards.

Gift of alignment

Equity is one of the few gifts that also benefits the giver. In offering it to its workers and employees, a company is able to indirectly benefit itself in terms of savings in salary expenses and increased motivation and productivity in the workforce.

This unique feature is made possible by the gift of alignment. By offering workers and contributors a future stake in its success, companies are able to align their interests with the people who are the most important and integral to its achievement.

Equity compensation is not a one-sided gift; it is a two-way street where its benefits and value become truly realized when both the giver and the recipient are working together.

Gift of community

More often than not, companies have a poor relationship with their end-users and stakeholders. This is usually demonstrated when companies make unwanted changes to their products and services or when they leave major complaints from the community unaddressed.

This happens because companies fail to understand the needs and concerns of their community members. In a previous blog, we talked about how one unique use of company equity could possibly address this problem. That is, using equity plans to build a community, by engaging the untapped potential and passion of community members and contributors.

In doing so, companies get to work more closely with their community. More importantly, both sides are incentivized to collaborate with each other to solve common issues, achieve common goals, and share in the fruits of their combined success.

Giving back is easy with Upstock and Uptoken

As the holiday approaches, it’s time for companies to think about how they can give back not just to investors and shareholders, but also to their key contributors and stakeholders (e.g., community members, workers, and employees).

We at Upstock enable companies to do just that. Upstock offers high-quality equity plans (using restricted stock units) and equity-like compensation plans. Our latest innovation, Uptoken's restricted token units for crypto companies, allows companies to enjoy the true benefit and value of giving back. Consider gifting your workers and contributors with an extra bonus of equity this holiday season to help motivate them coming into the new year.