Startup Essentials: Structuring Equity Compensation Wisely

Hosted By: Thomson Reuters

Equity compensation can be particularly useful to a startup company, which may not have the cash necessary to adequately attract, retain, and motivate employees with market-rate salaries. In certain industries, it is standard practice for a startup to include equity as a part of every employee’s compensation package. To make the best use of an equity compensation program, a startup must understand the legal implications, tax consequences, and accounting treatment of granting each type of equity award.

Join Practical Law for a free 75-minute webinar in which Shawn E. Lampron, a partner with Fenwick & West LLP, and her colleague, Marshall Mort, discuss the types of equity awards commonly used by early-stage startups and highlight key reasons why certain types of awards are used at various stages of a startup’s development.

In this program, attendees will:

  • Obtain an overview of the types of equity compensation startups commonly grant.
  • Gain an understanding of the basic characteristics, Section 409A and other federal tax consequences, accounting treatment, and advantages and disadvantages of these types of awards.
  • Explore other issues a startup and its counsel should consider when granting equity compensation, including the scope of an equity compensation program and appropriate vesting conditions and valuation methods.