Skip to content

Incentive Equity & Compensation

Incentivize Your Key Personnel While Avoiding Legal Pitfalls.

It’s important to many clients, especially in newly formed and growing ventures, to be able to issue incentives to keep their management and personnel motivated and engaged.

Unfortunately, making promises or grants of equity without considering the tax consequences is an extremely common problem we see businesses face.

If equity and compensation are not properly structured, your best people might face a large and unexpected tax bill. And if you don’t properly structure from the beginning, it can cause major problems when you later try to reorganize or close a successful exit transaction.

Depending on the structure of your business, valuation, and tax concerns, incentive equity can be far more complex than may clients realize. Taxing authorities are increasingly scrutinizing these transactions, so incentive and compensation plans must be properly structured and documented from the beginning.

With proper planning, Fabian VanCott helps its clients develop the right incentive plan for their needs. We are experienced in counseling clients and drafting plans for:

  • Stock Options (ISOs and Non-Statutory Options)
  • Profits Interests
  • Restricted Units
  • Phantom Stock
  • Employee Purchase Programs
  • Vesting Structures
  • Restricted Stock and Stock Units
  • Grant Documents
  • Officer and Director Plans
  • Deferred Compensation

Meet our team of attorneys below, and get in touch to discuss ways to avoid tax and compliance problems while incentivizing your key people in the optimal way.