Equity-Based Compensation
Equity-Based Compensation, such as stock options and RSUs, primarily functions as a long-term incentive, designed to extend beyond a one-year period. Its main objectives are to retain employees, align their interests with shareholders’, and attract high-quality talent.
Zviran offers consulting services to assist in developing equity-based compensation policies. These services include:
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- Determining eligible employee groups and the size of grants based on Zviran’s unique market benchmark data.
- Selecting the appropriate equity vehicles (Stock Options, Restricted Stock Awards, RSUs, SARs, ESPP, Phantom Stock Plans).
- Establishing vesting periods, performance conditions, expiration date, method of implementation (e.g., Net Exercise), and other specifics.
- Defining dilution goals and limits.
- Conducting simulations of employer costs, shareholder dilution, and employee earning opportunity.
- Outlining scenarios related to business events (such as change-of-control, IPO, business spin-off) and employee lifecycle events (like hiring, grant refresh, termination, unpaid leave, retirement) and defining plan’s specific for each of these events.
- Providing support through decision-making processes involving the board of directors and investors.