It is different for incentives but not for the actual outcome. Obviously you'd have to compare the same compensation levels, i.e. 100k in cash vs 100k in stocks

It is different for incentives but not for the actual outcome. Obviously you'd have to compare the same compensation levels, i.e. 100k in cash vs 100k in stocks (at payout). For start ups it can turn out cheaper as the compensation will be lower in stocks if the company doesn't perform well. From a shareholder perspective it's compensation and shouldn't be treated differently. Excluding it from costs is dangerous as it gives the impression that it's optional costs when in reality, you need to pay the stock compensation to retain talent.