What are equity grants?
Equity grants are awards of company stock, restricted stock, restricted stock units (RSUs) or stock options issued by a company to founders, employees, advisors or directors as compensation. Grants are typically made under a board-approved Equity Incentive Plan and documented in a written grant agreement that includes the number of shares, exercise price, vesting schedule and any acceleration provisions.
From a legal perspective, equity grants must comply with applicable securities laws (U.S. Rule 701, SEC Regulation D, or Turkish SPK communiqués for public companies), corporate authorization requirements, and the relevant tax framework (Section 83(b) elections, ISO holding periods, payroll tax obligations).