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Equity Compensation Plans
Equity compensation is non-cash, long-term incentive compensation that represents ownership interest in a company. The two most common forms of equity compensation are stock options and restricted stock. Companies use equity compensation to reward their executives in order to:
- Align executive and stakeholder interests
- Attract, motivate and retain talent
- Promote capital accumulation
Equity compensation encourages executives to develop stakeholder mentality, which, in turn, encourages company-focused decision-making on the part of executives.
CRI has designed equity compensation plans for companies across various industries. Depending on the company’s goals and objectives, equity plans can include:
Among other things, consideration of the tax implications of each plan, is a primary consideration for companies when choosing which plan(s) are the right fit for them.
Periodic review of existing equity compensation plans is important, in order to remain competitive, and retain key talent.
Please contact Compensation Resources, Inc. to learn more about equity compensation plans. Please contact us by email, or call us directly to speak with one of our compensation consultants at 877-934-0505.
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