Masters in Business At The Money: Getting Paid in Company Stock
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Jul 23, 2025 
Joey Fishman, a Senior Advisor at Ritholtz Wealth Management, dives into the world of equity-based compensation, particularly in tech and VC-backed firms. He breaks down the complexities of stock options and the importance of understanding vesting schedules. Joey shares insights on the psychological challenges employees face when navigating their investments and warns against the dangers of having a concentrated net worth in one stock. He emphasizes the need for professional financial advice and effective diversification strategies.
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Common Equity Compensation Types
- The most common equity compensation forms are restricted stock units (RSUs), non-qualified stock options, and incentive stock options (ISOs).
- ISOs offer long-term capital gains tax benefits but are only for employees, unlike non-qualified options.
Equity Builds Employee Incentive
- Equity compensation aligns employee interests with company growth and culture.
- It motivates employees to actively contribute and benefit financially from business success.
Tax Complexity in Equity Compensation
- Different equity forms have varying tax implications often making tax planning complex.
- Achieving long-term capital gains treatment is crucial to reduce tax liabilities on gains.