Five Keys Steps to a Successful Private Company Equity Plan

In order to compete in today’s market, more and more private companies are developing equity award programs to attract top talent. There are a few critical first steps to designing a comprehensive and successful equity program. Considering all the key stakeholders across departments will ensure an open line of communication. Equity compensation touches many job functions, and it is crucial to gather everyone from the beginning. You will also need to decide who will be eligible for the equity program, executive-only or broad based, and what percentage of shares the company will dedicate to the equity plan. There are a myriad of award types that you can offer to your participant pool, all with specific accounting and administrative implications. The day-to-day management of an equity program is complex, and the tools you use to maintain the administrative elements and financial reporting can make all the difference. There are also a few key considerations to selecting the right system of record for your company. From determining the right stakeholders to establishing key design factors, this white paper will provide you with practical advice for creating a solid stock plan foundation.