"This equity is provided in order to align incentives." That leaves out the other - probably more significant - reason - it's provided because it can increase

"This equity is provided in order to align incentives." That leaves out the other - probably more significant - reason - it's provided because it can increase the (real or perceived) value of compensation packages without spending scarce cash. "Lack of equity might cause an employee to feel left out and/or poorly compensated." ... uhh... or they might not have joined the company in the first place?