Alisa J. Baker
You may find a gap between what you expect from your equity compensation and what you receive. Often the problem stems from the complexity of the related documents and rules. Learn about them, and understand why you must focus on conflicting or inconsistent provisions.
Alisa J. Baker
Part 1 looked at the problems of conflicting or inconsistent provisions among different documents. Part 2 discusses which existing documents and rules nonfounder executives must consider when negotiating for equity compensation during the early (pre-public) stages of a company's development and growth.
Alisa J. Baker
Part 3 of this article series reviews the steps you must take to preserve your equity rights at or before the termination of your employment, and in any severance arrangement. The impact depends on your specific agreements, the company's overall plans and policies, and—in many cases—the reason for the termination.
A down market provides ideal circumstances for negotiating a larger stake of equity compensation as part of your pay package. With companies looking to conserve cash and find effective ways to recruit, retain, and motivate executives and key employees, your interest in this type of compensation may be well received. This article explores the possibilities you may want to consider if this opportunity arises.
Get a sense of what you should, and should not, expect in the terms of your stock option grant. This survey of 300 companies looks at trends in vesting schedules, post-termination exercise rules, and other plan features.
Edwin L. Miller, Jr.
Understand what could happen to your stock options or restricted stock in venture capital financings, in an acquisition, or in an IPO. Part 1 looks at M&A deals; Part 2 analyzes IPOs.
How typical are your grants of stock options or restricted stock? Compare their terms and provisions with corporate stock grant data from the NASPP's Domestic Stock Plan Design Survey
It's hard to find comparative data on grants of stock options and restricted stock. The NASPP's Domestic Stock Plan Surveys for 2010 and 2011 include data on grant guidelines, expiration provisions, job termination exercise rules, and M&A.
The days of exercising your stock options, pocketing the gains, and leaving the company for a direct competitor may be over. Your company may put noncompete forfeiture provisions in your stock grants.
Understand the range of issues in structuring your employment contract, including provisions on stock options and restricted stock.
The New York Times
This interactive article presents the compensation and wealth accumulation of the highest-paid CEOs. The figures, including the value of stock and options awards, are calculated from companies' proxy statements.
As stock option expensing has caused publicly traded companies to reduce stock grants, it has similarly affected stock grants at privately held companies. The pay packages at private companies can now more evenly match those at public companies, and private companies can offer more generous option grants. The practices noted in this article have become trends since it was published.
Learn basic ways to calculate whether trading salary for equity makes sense.
Stock options are a nice incentive but probably not the road to riches.
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The likelihood depends mainly on your position, its salary grade, and/or your company's industry. Surveys of common practices among companies show that...
Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were predicted to be extensive and vigorous. Experts at consulting and research firms have been busily analyzing corporate stock plan practices since then...
In most instances, stock grants are subject to the same types of practical limitations as negotiations for your cash compensation. For example, an employer may...
Not usually. An exception would occur if your...
If your skills are in great demand, employers may...
If a company makes a grant with a specific vesting schedule and the schedule is later shortened from its original terms, the accountants will usually...
During the early stages of a company's existence (e.g. up to the first round of venture financing) you may be able to get...
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