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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.

has designed equity compensation plans for companies across various industries. Depending on the company’s goals and objectives, equity plans can include:

  • Restricted Stock Plans 
  • Incentive Stock Option Plans
  • Non-Qualified Stock Option Plans
  • Employee Stock Ownership Plans (ESOP)
  • Employee Stock Purchase Plans (ESPP)
  • Phantom Stock Plans

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 do not hesitate to contact Paul Dorf at (877) 934-0505 x 111 or Harry Schum at (877) 934-0505 x 170 to discuss your company's issues, and how CRI can assist.




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This information is not intended for use without professional advice.

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