Startup Essentials: Structuring Equity Compensation Wisely
Shawn E. Lampron, a partner with Fenwick & West LLP, and her colleague, Marshall Mort, will discuss the types of equity awards commonly used by early-stage startups and highlight key reasons why certain types of awards are used at various stages of a startup’s development when they lead a Practical Law free 75-minute webinar.
The webinar will be Wednesday, March 2, 2016, beginning at 1 p.m. EST.
Equity compensation can be particularly useful to a startup company, which may not have the cash necessary to adequately attract, retain, and motivate employees with market-rate salaries. In certain industries, it is standard practice for a startup to include equity as a part of every employee’s compensation package. To make the best use of an equity compensation program, a startup must understand the legal implications, tax consequences, and accounting treatment of granting each type of equity award.
CLE credit is available for: Arizona, California, Colorado, Georgia, Hawaii, Illinois, Missouri, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Washington, Wisconsin. CLE credit is being sought for: Indiana, Minnesota, North Carolina, Oregon, Tennessee, Texas, Virginia. CLE can be self-applied for in: Florida.
In this program, attendees will:
Obtain an overview of the types of equity compensation startups commonly grant.
Gain an understanding of the basic characteristics, Section 409A and other federal tax consequences, accounting treatment, and advantages and disadvantages of these types of awards.
Explore other issues a startup and its counsel should consider when granting equity compensation, including the scope of an equity compensation program and appropriate vesting conditions and valuation methods.
A short Q&A session will follow.
Presenters:
Shawn E. Lampron, Partner, Fenwick & West LLP
Marshall Mort, Associate, Fenwick & West LLP
Amy Adams, Senior Legal Editor, Employee Benefits & Executive Compensation Service, Practical Law
Joe Green, Senior Legal Editor, Capital Markets & Corporate Governance Service, Practical Law
