


Understanding Scrippage in Company Stock Options and Employee Equity Compensation
Scrippage is a term used in the context of company stock options and employee equity compensation. It refers to the process of granting employees stock options or other forms of equity compensation as part of their compensation package. The term "scrippage" comes from the idea that the grant of these equity awards is like a scrip, or a voucher, that can be redeemed for shares of company stock at a later date.
Scrippage is often used by companies to incentivize and reward their employees, particularly high-performing employees or those in key roles. By granting employees equity compensation, companies are able to give them a direct stake in the company's success and align their interests with those of the shareholders. This can help to motivate employees and drive long-term growth and success for the company.
There are different types of scrippage, including stock options, restricted stock units (RSUs), and employee stock purchase plans (ESPPs). Each type of scrippage has its own characteristics and tax implications, so it's important for companies and employees to understand the terms and conditions of their equity compensation arrangements.



