For both established companies and new companies, it is often essential to allow key employees to participate in the company's future growth and profitability through equity ownership. This helps align the interests of ownership and key employees. Equity compensation can be more affordable from the employer's standpoint because the employee generally only benefits if there is future growth and profitability. From the employee's perspective, it is beneficial because it allows employees to reap the rewards of their efforts. Corporations, limited liability companies, and partnerships can all issue equity compensation awards. READ MORE