Question: Another important area is equity-based compensation, such as stock options or restricted stock units. For example, Microsoft grants employees stock awards that vest over time,

Another important area is equity-based compensation, such as stock options or restricted stock units. For example, Microsoft grants employees stock awards that vest over time, creating taxable income upon vesting while giving the company a corresponding deduction (Microsoft, 2023). These plans align employee and shareholder interests.

What are some advantages and disadvantages of equity-based compensation compared to wages?

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