Top 10 Things Private Companies Do With Equity, But Shouldn't
From Our Equity Compensation Webinar SeriesEach one-hour Webinar features an experienced authority in the field and discusses a requested topic.
This replay was recorded on June 26, 2013.
About This MeetingIn some industries, equity compensation has become as expected as other standard employment benefits. Private companies, especially start-ups and early stage companies, often don't have the resources or insight to fully grasp what it means to offer equity compensation to their employees, directors and consultants. Even those companies that were careful enough to have a plan properly drawn up by corporate counsel don't generally have an understanding of accounting and tax consequences and how those consequences can affect their bottom line and their employees. This webinar will talk about the most common risks faced by private companies and provide understanding and resources to ensure the success of your equity compensation program.
- The value of having a clear purpose for using equity compensation before implementing the plan.
- Understanding the expenses related to implementing and administering an equity compensation plan.
- The risks related to using spreadsheets and reasonable alternatives.
- The risks of having an unqualified administrator.
- The risks of nonexistent or inconsistent grant processes and internal controls.
- The risks of working in isolation.
- The risks of failing to properly expense options.
- The risks of failing to get an independent valuation of company stock.
- Understanding the long-term nature of equity compensation plans.
- The relationship between the option plan reserve pool and venture capital financing.
This Webinar has already taken place. It is available as a free replay in the members-only area of this site.