[overrun11]

Yes both the money and the stock are incentives and they are of equal value. You've still failed to explain why one is better than the other.

[RhodesianHunter]

Stock vests over time. By providing stock instead of cash the company incentivizes the employee to do their best, because that will ostensibly help the stock to be worth more than the cash by the time it vests. Hence, incentive.

Does that make more sense?