Employee Long-Term Compensation
While employee ownership at the senior level can make sense for some entrepreneurial businesses, the overlay of business objectives with tax rules makes getting the right advice crucial. We have worked with a number of private company clients to develop the ownership element of compensation for newly hired CEOs and other senior members of the management team.
From our perspective, the key is to ensure that goals are aligned and that the compensation structure takes into account the primary objectives of the business owner. If these aren’t properly considered, the potential for significant disagreement and disharmony is very high.