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Performance Equity
Stock awards in which the payout depends on the meeting of certain metrics determined before the grants are made. This type of equity award, which almost always uses restricted stock or RSUs, has become very common for executives. The term can be synonymous with performance awards, as companies and compensation consultants use it in varying ways. Performance equity is an alternative to the concept of time-based stock awards, though payouts of performance-based grants are (by default) partly based on duration of employment at the company through the performance period.
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