To give or not to give employee equity, that is the question. One of the first issues startups deal with is how they plan on compensating key personnel. For startups with limited funds, there may not be many options. The want or need to issue equity really depends on your startup’s short and long term goals, as well as its financial capabilities.
Restricted stock refers to the right to own stock, but with predetermined restrictions. Restricted stockholders won’t be allowed to own stock until certain conditions are met fully. These conditions could be fulfilling performance goals or sticking with the company for a specific period of time.