Question
Should employees be able to choose to receive part of their annual bonus in company stock instead of cash?
Background
Some employees want more long-term upside and direct ownership in the business. Offering equity in place of cash bonuses could support retention and alignment, but it adds administrative complexity and exposes employees to additional risk if the stock declines.
Options
- Offer an optional stock allocation for up to 50% of the bonus amount.
- Offer stock-only bonuses for senior leadership; keep cash for others.
- Keep bonuses entirely in cash for all employees.
- Explore a separate employee stock purchase plan instead.