the start-ups which are in the early stages of their businesses lack the ability to pay competitive and high salaries to their employees which established businesses or large corporations can afford to pay, although the former requires good share of human capital because of them facing resource constraints, and unstable cash flow. start-ups and other established companies often require motivated employees who can over-perform and exceed their expectations. therefore, with an aim to retain and incentivise employees, companies come up with rewarding performance bonuses, revenue shares, stock options or a stake in the company.