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The Rise of Equity-Based Compensation Plans

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The Rise of Equity-Based Compnsation Plans
Matthew S. Parrish, Esq., Cors & Bassett, LLC

Equity-based compensation plans have been a favorite incentive of public companies for many years. Family-owned businesses have been less inclined to adopt plans that award equity (e.g. stock, partnership interests, or LLC membership interests). This is understandable given that family-owned businesses face dynamics much different than those that public companies face. Transferring equity to certain family members or to non-family member executives can alter the dynamic of who controls the company. It also can create hard feelings among those family members who invested in the business and resent that the company is giving away equity interests to others.  Read More...