Why Do Millennials Love Equity Compensation and How Can Entrepreneurs Use It?

February 21, 2022
Equity compensation is an increasingly common part of a benefits package. Why are younger workers driving demand for it?

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

As many small and early-stage businesses are still coping with the effects of the pandemic, one way to attract high-quality employees and help keep payrolls manageable could be the use of equity compensation. Increasingly, millennials are demanding that new job offers include equity as part of any compensation package. What's behind this trend? When does it make sense?

In this episode, Mark talks with Amy Reback, head of Stock Plan Services at Schwab. They discuss what to look for in an equity compensation package, how employers can offer ownership in creative ways, and what changes to the regulatory landscape might affect equity compensation.

Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.

Financial Decoder is an original podcast from Charles Schwab. 

If you enjoy the show, please leave us a rating or review on Apple Podcasts.

Are you on track to reach your goals?

Caring for Your Finances if You're Suddenly Single

If you find yourself suddenly single, you might have to make major financial decisions. Read this article to learn how to manage your finances during the transition.

Can You Give Stock as a Gift?

Giving stock can be both a financial gift and a personal finance lesson. But get the details first.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risk including loss of principal.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Tax laws are subject to change, either prospectively or retroactively. Individuals should contact their own professional tax advisors or other professionals to help answer questions about specific situations or needs prior to taking any action based upon this information.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets. 

Schwab Stock Plan Services provides equity compensation plan services and other financial services to corporations and employees through Charles Schwab & Co., Inc. ("Schwab"). Schwab, a registered broker‐ dealer, offers brokerage and custody services to its customers.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

0222-2LHY