Equity and Employees, How to Tackle this Complex Issue
One of the more complicated aspects of maintaining a business overseas is finding new ways to attain & attract U.S. talent. Equity is a great way to attract talent and keep your employees motivated.
However, when you are a foreign company expanding to the U.S., there are more complexities to consider. What should you think about when you are looking to give your U.S. employees equity?
Equity Plans for U.S. Employees
Our trusted partner Wilson Sonsini Goodrich & Rosati are experts in making equity plans work for U.S. employees. They have written a very relevant article on everything you need to know.
The Central Points Tackled in this Piece are:
- Providing for non-Enterprise Management Incentives grants of options and shares.
- Providing for “reverse vesting”.
- Obtaining appropriate fair market valuations.
- Setting options exercise prices appropriately.
- How differences in market practice may affect determining the fair market value of employee grants.
- And taking into account the local taxation of share and option grants.
The article thoroughly delves into all six topics and more. Giving you and your business the knowledge to build a flexible equity compensation plan, and deal with these overseas issues if and when they arise.