Here's how to best invest in your employer's stock
When public safety technologies company Axon wanted to change the performance incentives for its CEO, Rick Smith, the company took it one step further.

Now, the company's employees are able to participate in an aggressive compensation plan that's tied to the public company's goals. The plan mirrors the same incentives Smith is working towards.

The new plan began in January. All employees received at least 60 stock units in the plan, while employees with compensation of $100,000 and up could increase their participation rate.

The plan's goal is to take a typical stock grant, a restricted stock unit, and "supercharge" that, according to Axon Chief Financial Officer Jawad Ahsan. That includes a 3-times multiplier for risk, which is also multiplied by nine years, the length of the program.

For an employee, that means a $1,000 RSU could convert to a $27,000 XSU, or eXponential stock unit.

Provided the company hits all its milestones over that nine-year horizon – including market capitalization, revenue and EBITDA (earnings before interest, tax, depreciation and amortization) targets – that $1,000 could ultimately be worth $135,000, Ahsan said.

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The introduction of the plan has changed the way employees engage with the company's goals, he said.

"Employees started getting a lot more creative about how we can expand beyond our core law enforcement market," Ahsan said.

Axon's compensation plan changes were initially inspired by the incentives Tesla gives to CEO Elon Musk. Tesla also provides its employees with an equity compensation plan, according to public disclosures.

If you think you need to work at one of these companies to get those kinds of benefits, think again. Many companies offer restricted stock plans, stock options and employee stock purchase plans. The key is to know what is available to you, said Emily Cervino, head of industry relationships and thought leadership at Fidelity.

"Stock compensation can be a great way for employees to generate wealth and share in the economic appreciation of their company," Cervino said. "But you really need to understand what you have in order to make the most of it."