The District of Columbia Equity Compensation Plan is a comprehensive program in place to provide incentives to employees residing and working in the District of Columbia. It offers various forms of equity-based compensation to stimulate motivation, attract top talent, and retain valuable employees within both public and private sectors. This plan aims to reward employees for their contributions towards organizational growth, while aligning their interests with long-term company success. Under the District of Columbia Equity Compensation Plan, numerous types of equity-based incentives are available. These include: 1. Stock Options: Stock options grant employees the right to purchase company stock at a predetermined price, known as the exercise price. Employees can exercise these options after a specified vesting period, allowing them to profit from any increase in stock value. 2. Restricted Stock Units (RSS): RSS are a form of compensation where employees receive actual shares or units of company stock, subject to a vesting schedule. These are granted without any purchase price, but employees must fulfill specific requirements before obtaining full ownership. 3. Employee Stock Purchase Plans (ESPN): ESPN allow employees to purchase company stock at a discounted price, often through payroll deductions. This not only encourages employee participation but also fosters employee ownership and loyalty. 4. Performance Shares/Units: Performance shares/units are granted based on predetermined performance metrics, such as financial goals or individual performance targets. If the specified goals are achieved, employees receive shares or units of company stock as a reward. 5. Stock Appreciation Rights (SARS): SARS provide employees the opportunity to profit from the increase in company stock value over a specified period. Employees are granted SARS, which they can exercise at the end of the vesting period, receiving either cash or company stock equivalent to the appreciation in stock value. 6. Phantom Stock: Phantom stock is a type of equity-based incentive that mimics actual ownership without granting employees any stake in the company. Employees receive hypothetical units, usually linked to company stock value, and receive a cash payout equal to the value of these units upon a specified triggering event. The District of Columbia Equity Compensation Plan aims to cater to the diverse needs and preferences of employees, ensuring that they are rewarded appropriately for their contributions. These incentives promote loyalty, dedication, and a sense of ownership among employees, ultimately benefiting both the employees and the organizations they work for.