👉 Equity engineering is a strategic approach used in financial markets to manage and optimize the distribution of ownership stakes among shareholders, particularly in publicly traded companies. It involves structuring transactions and implementing policies to ensure fair and efficient allocation of equity, often used to align interests between management and shareholders, enhance corporate governance, and facilitate mergers and acquisitions. By carefully designing equity structures, companies can incentivize key stakeholders, reduce agency costs, and improve overall corporate performance. This process includes mechanisms like stock options, restricted stock units, and other equity-based compensation plans, all aimed at promoting long-term value creation and equitable distribution of benefits.
