Thoughts on How to Distribute Startup Equity Among Key People

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The purpose of granting equity to management, employees, consultants and advisors is to align the interests of the individuals central to the growth and success of your start-up company with the interests of investors. There are a number of ways to distribute start-up equity. The most common are stock options and restricted stock. One of …Read more

Using Phantom Stock in a Family-Owned Business to Attract Employees

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Like any business, a family-owned business has a strong incentive to attract, retain, motivate and reward key employees. A competitive salary and benefits package may not be enough to do this in today’s market. Many businesses offer equity incentive plans to employees as a form of long-term incentive compensation. For many family-owned businesses offering stock …Read more

Tax Treatment of Equity Compensation

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Federal and state tax codes can take a big bite out of your company’s equity compensation. That’s why founders, executives, and employees of start-ups should understand the role that Internal Revenue Code Section 83 plays in the tax treatment of equity compensation that is given in exchange for services. Most startups use equity incentives instead of cash, at …Read more