Thousands of companies – both public and private – offer equity compensation to employees. Every employer does so for a reason, but many may be reconsidering after a few painful months in the equity markets.
Starting questions
Before you make the decision to start, keep or drop an equity compensation plan, consider these questions.
- When measuring success for your equity comp plan, what are you trying to accomplish?
- Do you have an equity compensation strategy that is well-defined? Do you have a clear philosophy and goals?
- Will your strategy stand the test of time, or will external forces like market volatility cause you to revise your plan year after year?
How to build a measurable plan
If your answers to these questions suggest equity compensation is still right for your employees, you are ready to take three important steps.
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