For early-stage ventures, which of the following is a strong reason for having an equity component in employee compensation?

Question

Quizplus · Accepted Answer

Early-stage ventures often have limited cash resources and may not be able to offer competitive salaries to attract and retain top talent. By offering equity as part of their compensation package, they can incentivize employees to work towards the long-term success of the company while keeping current compensation costs lower. The expected deferred and tax-preferred nature of equity compensation also makes it an attractive option for employees. Options B, C, and D are not strong reasons for having an equity component in employee compensation.

For Early-Stage Ventures, Which of the Following Is a Strong