Contingency Stock Plans

Compensation Resources, Inc. can develop a variety of programs and creative designs for contingency stock plans that fit your company's needs. Such plans have the following features:

Design Features:

•  Company grants future "real" stock contingent on the company eventually going public.

•  The value to the employee will only occur when the event occurs.

Advantages:

•  Company does not book the liability and there is no charge to earnings.

•  Employee will enjoy upside appreciation as "stock" value increases.

Disadvantages:

•  There is limited motivation to participants since no pay out will occur unless the company is sold or has an IPO.

•  Company must communicate financial status to participants.

To find out more on how Compensation Resources, Inc. can help your company with Contingency Stock Plans , please contact us or call us directly to speak with our compensation consultants at 877-934-0505.