2020 Closely Held Stock Options, Restricted Stock, Etc.

Equity-based compensation is often essential to recruiting and retaining key employees in closely held companies.  Whether through the use of stock options, restricted stock, appreciation rights or other instruments and techniques, incentive compensation aligns the financial interests of key employees with the entity. Incentive compensation also often has the benefit of not requiring the immediately outlay of cash. Depending on the instruments used, equity-based compensation may also help defer tax recognition.  Compensation in LLCs takes on different forms but functions similarly. This program will provide you with a practical guide to equity-based incentive compensation in closely held companies.

• C and S Corp incentive compensation v. pass-through entity incentive compensation
• Eligibility for tax-favored Incentive Stock Options v. non-qualified stock options
• Use of restricted stock – valuation, vesting, and treatment
• Appreciation rights in corporate and pass-through entities
• Common structuring and drafting traps
• Tax treatment, advantages and disadvantages of incentive compensation

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.