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.