Use this button to switch between dark and light mode.

What’s Their Incentive? Examining Incentive Compensation in Start-ups

October 04, 2022

Traditional equity incentive compensation for a start-up’s employees, including its founders and other associated persons, include grants of stock (restricted or otherwise) and stock options (rights to purchase company stock at a discount in the future). This practice note identifies and discusses restricted stock, incentive stock options, and non-statutory stock options—three of the most common types of equity and equity-based incentive compensation awards issued to a start-up company’s founders and key employees. It also examines the equity incentive compensation plans to which such awards are subject and provides practical guidance and advice for drafting these plans.

READ NOW »


Related Content

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.


Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+