Choosing the Right Type of Equity Compensation for Startup Company Employees | Practical Law

Choosing the Right Type of Equity Compensation for Startup Company Employees | Practical Law

A Practice Note providing an overview of the types of equity compensation awards commonly used by startup companies and an explanation of the reasons why certain types of awards are used at various stages of development. This Note discusses the basic characteristics, federal tax consequences, accounting treatment, and advantages and disadvantages of granting each type of equity award. 

Choosing the Right Type of Equity Compensation for Startup Company Employees

Practical Law Practice Note 3-589-7685 (Approx. 16 pages)

Choosing the Right Type of Equity Compensation for Startup Company Employees

by Shawn E. Lampron, Fenwick & West LLP, with Practical Law Employee Benefits & Executive Compensation
MaintainedUSA (National/Federal)
A Practice Note providing an overview of the types of equity compensation awards commonly used by startup companies and an explanation of the reasons why certain types of awards are used at various stages of development. This Note discusses the basic characteristics, federal tax consequences, accounting treatment, and advantages and disadvantages of granting each type of equity award.