On September 6, 2017, CEOWorld magazine published an article I wrote on “Getting the Benefits of Equity Compensation from Family Businesses through Phantom Stock.”This article was designed for CEOs, C-suite executives and other senior executives who currently work in a family business or are offered a position in a family business and receive now or are offered NO equity compensation because most family businesses do not issue equity to non-family members.
My article discusses the use of Phantom stock as a mean to give the executive a substitute to equal for him or her all the benefits that stock, options or RSUs would provide to the executive in a non-family business.
Techniques used in the past and offered to the reader can produce a true “win-win” by providing key benefits to the family business as well as to the CEO or other senior executive, including the following
My article includes a hypothetical example, where a 55-year-old executive is to take the CEO position as successor to the 75-year-old family CEO. In this example, the successor CEO negotiates for the establishment of a phantom stock plan as a condition to taking the position. The intention is that the successor CEO receive phantom stock under the phantom stock plan as an important part of his (her) executive compensation package and that the plan would continue after that to enable the successor CEO to use phantom stock to recruit other non-family senior executives to further bolster management of the family business.
To see my full CEOWorld magazine. article, go to LINK: http://ceoworld.biz/2017/09/06/getting-the-benefits-of-equity-compensation-from-family-businesses-through-phantom-stock/
or my website:
With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.
It is my hope that this article will be helpful to (1) CEOs and senior executives working in family businesses, (2) CEOs and senior executives considering taking positions in family businesses, and (3) leaders of family businesses seeking to recruit non-family members as the new CEO or other senior executives. If you or any colleague of yours has a need in this area, please do reach out to me, your executive employment lawyer, at email@example.com or call 617-875-8665.
On July 10, 2017, CEOWorld magazine published an article I wrote on “Restricted Stock And Other Equity Options For Your Executive Compensation Package” This article was designed for CEOs, C-suite executives and other senior executives who are negotiating stock, options, RSUs or other equity as part of their compensation package.
The article first discusses the key ways to assure value in your executive equity compensation package –
The article then goes on to discuss the merits of Stock Options both, non-qualified and incentive stock options, Restricted Stock and Restricted Stock Units (RSUs).
The article indicates that in the high growth and turnaround situations, the much better choice is to get all or a significant part of your equity structured as Restricted Stock, which offers these. significant advantages:
My article also discusses how RSUs structure is quite desirable in companies where high growth is not expected and the executive wants to be assured of equity that will have value. For more information on RSUs, see my February 2017 CEOWorld article focused entirely on RSUs – LINK: http://www.executiveemploymentattorney.com/articles-section/the-advantage-of-rsus-in-your-ceo-compensation-package/
My article on “Restricted Stock And Other Equity Options For Your Executive Compensation Package” was published July 10, 2017 by CEOWorld magazine.
To see my full article, go to http://www.executiveemploymentattorney.com/restricted-stock-and-other-equity-options-for-your-executive-compensation-package/
With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.
It is my hope that this article will be helpful to senior executives who are negotiating equity terms as part of their compensation package going into a new position or in connection with a raise, promotion or change of control. If you or any colleague of yours has a need in this area, please do reach out to me, your executive employment lawyer, at firstname.lastname@example.org.