What is Total Equity?
Total Equity represents the current value of an employee's full equity holdings, calculated by multiplying their total number of shares (including both vested and unvested) by the company's most recent preferred share price (private companies) or current share price (public companies). This value encompasses both the appreciation of existing shares and any additional equity grants received beyond initial new hire awards, such as refresh grants and performance-based awards.
Why is Total Equity being deprecated?
Total Equity is a challenging compensation type to take meaningful action on. We’re aiming to focus on more granularity in our other compensation types (e.g. New Hire Equity, Refresh Equity, and Unvested Equity) in order to give our customers a more nuanced and actionable view into equity compensation. This is where we’ll be focusing investment moving forward.
What should I reference once Total Equity is deprecated?
As customers transition away from Total Equity, we recommend customers reference the New Hire Equity compensation type in Employee Compensation moving forward.
New Hire Equity provides benchmarks for the value of the first grant received by employees when the joined a company. This allows customers to benchmark their New Hire Equity targets and build programs around their new hire grants.
Customers that are issuing Refresh Grants, want to better understand market rates of Unvested Equity and holding power, or want to explore advanced filter capabilities should consider our Market Data Pro product. Learn more about Market Data Pro and Advanced Equity here.
Is Total Equity in Executive Compensation impacted?
No. Only Total Equity in Employee Compensation will be impacted. Total Equity in the Executive Compensation tab will continue continue to be available until we introduce the same level of granularity into new hire and other equity grants to our executive levels.