WebCredenza 2024 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.

• Pros and cons of equity comp.
• Equity comp basics.
• Valuation issues.
• Vesting conditions.
• Repurchase rights.
• Corporate equity awards – Restricted stock and stock options (NSOs and ISOs).
• LLC equity awards – Profits interests and phantom equity.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.