Corporations—particularly public corporations—typically include some form of equity (corporate stock) in their executives’ pay. That equity can take different forms, each with its own tax and investment consequences. Whatever the form of equity compensation, it typically vests—or becomes available to the employee—over a set time, often three to five years. The goal is to reward loyalty and make continued employment remunerative, with less turnover by more valuable employees. Employees who leave before that compensation vests never receive it. READ MORE