ESOP plan for small business

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Hi,


I have been asked to set up a Stock option plan along with commission plan for senior employees and sales managers. What should I look for to set up such a plan? Is there a checklist or can someone refer me to an expert?


Thanks,


 


Deepak

5 Replies

Hi Deepak,


Welcome to the ECE. It is always great when a new member asks their first question before I can send them a welcome message.


Designing effective equity compensation and commission programs is complex task.  As starting point, please take a look at Performensation's Equity Compensation Matrix.  It provides a high level overview of the most common equity instruments used in the US, including different types of stock options.


I provide end-to-end guidance and assistance in creating both equity plans and performance compensation, such as sales commission plans. I can provide help through the entire process, or at any point within the process.


Please fee free to contact me directly.  I will also send you an email with additional information.


Best Regards,


Dan Walter
ECE Founder


President and CEO
Performensation
dwalter@performensation.com
415-625-3406


www.performensation.com


Attachment.

Dear Mr Ahuja


We are a Equity Compensatio advisory group based in India. Please feel free to communicate us at vinay@equitycompere.com (09881254942) or ria@equitycompere.com (09604248166).


Regards


Vinay

Hi Deepak:


Welcome to ECE!  I'm an equity and executive compensation attorney with Littler Mendelson in our San Francisco office.  We can help you with both (or either) of your plan design and preparation.  Please note that sales commission plans are subject to local wage and hour laws, for example, in California, you must be cognizant of when sales commission is subject to forfeiture, as California wage and hour laws may provide that such payments cannot be forfeited under certain circumstances.  Also, if you work for a private California company, California securities laws can get tricky for the issuance of stock options and other equity compensation vehicles.


Please feel free to contact me at esueda@littler.com or 415.288.6303 if you would like to discuss your matters further (subject to a conflicts check).


Best,


Ellen Sueda 

Hi Deepak


 


It's not clear to me whether this is a US only plan (or other country), but the tax issues with private company plans offered internationally can be complex and yield surprising results. I support my global client base identify and plan around these very issues.


 


If you this is on point and you would like to talk about the typical issues companies encounter, please feel free to reach out to me on mamiller@deloitte.com or 408 704 4308.


 


Kind regards


Mark

Deepak,


I represent a consulting firm that specializes in all aspects of Equity Compensation. Our consultants can not only help with award and plan design, but can also value your options using various methodologies. I have a recent publication I would like send you that concentrates on valuing options for private and newly public organizations.


I would like to hear more about your project. Please feel free to contact me at nemi.bennett@equitymethods.com


Best,


Nemi

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