Close this window
Can some types of companies not offer stock options or other forms of equity compensation to their employees?
Typically, only for-profit corporations are eligible to offer stock options and other stock grants, though limited liability companies have developed innovative ways to grant the equivalent of equity stakes in the form of "capital interests" and "profit interests." Government entities, churches, nonprofits (such as hospitals or schools), mutual insurance companies, professional corporations (e.g. doctors, lawyers), and sole proprietorships do not offer stock options either because the entity is prohibited from doing so by law or because the entity is not owned by shareholders.

The content is provided as an educational resource. shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2018, Inc. is a federally registered trademark.
Please do not copy or excerpt this information without the express permission of
Contact for licensing information.