Which of the following is true when compensating employees with company equity?

Question

Quizplus · Accepted Answer

Compensating employees with company equity may be considered a taxable item because the value of the equity received by the employee represents income. The employee may have to pay taxes on that income. The other choices are incorrect. The equity is subject to securities laws and cannot be considered a gift. The equity can be tied to performance to align the interests of the employee and the company.

Which of the Following Is True When Compensating Employees with Company