Talent is a scarce resource. Given that the number of skilled employees is fixed or increases at a slower rate than the demand for skilled labor, what would be the best legal regime to allow efficient allocation of talent? This question is crucial for stimulating innovation and economic growth. My research suggests that the answer is the combination of a strong policy against enforcing non-competition agreements and in favor of providing broad-based equity compensation. As part of my research, I study the mechanisms through which start-up employees’ dual capacity as equity holders—holding options, RSUs, or other vehicles—and as suppliers of labor, influences talent acquisition, retention, and intra-firm transparency. I also offer concrete policy recommendations for better regulation of this realm to facilitate talent transition to companies that can use it most effectively and guide employees' investment decisions.