Traditional employment compensation is generally limited to a salary and sometimes a discretionary bonus. However, providing employees with equity in a business can offer several beneﬁts, including:
However, it's important to note that offering equity also comes with responsibilities and potential risks, such as dilution of ownership and the need for proper documentation and record-keeping. It's important to carefully consider the beneﬁts and risks of offering equity, and to consult with legal and ﬁnancial advisors, before implementing an equity compensation program. If you are a business owner considering implementing such a program, the attorneys at Outside Legal Counsel LLP have extensive experience in this area. We also routinely counsel individual employees who are in receipt of equity to help them understand their rights and obligations as they relate to the equity portion of their compensation.
This is not legal advice and is attorney advertising.
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