Incentive Structures and Equity Compensation

Equity compensation plays a crucial role in retaining talent and incentivizing employees within an organization. A unique CEO bonus program was created to allocate equity to employees deemed deserving by their managers, allowing even long-term employees to receive stock options. As the company grew, it became essential to increase the equity component of compensation for senior roles to discourage thoughts of job changes. This approach focuses on giving substantial one-time retention grants to key talents, ensuring that managers think about long-term commitment rather than merely preventing employee departures.