Stock and equity just aren’t great at motivating employees.
If you’re at a small and pre-public startup, your decisions and effort can directly affect product success BUT the equity is only theoretically valuable someday in the distant future so you ignore it.
If you’re public and getting stock/rsus, your company is likely large enough that there’s nothing you can do single-handedly to affect the price.
Plus, stock price doesn't necessarily reflect (or isn't directly proportional to) positive business outcomes. Even if it was a great motivating tool, you would only motivate employees to do whatever pumped the stock price, not necessarily to solve underlying business problems.
Stock and equity aren't really formotivating employees. They're for attracting employees, and then aligning their goals with those of the shareholders.
The first software startup I worked at didn't give out equity, and when the sales guys closed big deals with aggressive delivery timelines we hated it because it just meant more work for us. Many of my teammates passive aggressively dragged their feet, but if we'd had equity we would've been high-fiving the sales guys after landing big clients.
If you’re at a small and pre-public startup, your decisions and effort can directly affect product success BUT the equity is only theoretically valuable someday in the distant future so you ignore it.
If you’re public and getting stock/rsus, your company is likely large enough that there’s nothing you can do single-handedly to affect the price.