For the most part, Equity-Based Compensation (stock options, RSUs etc.) serves as a long-term incentive (i.e. an incentives designed for a period of time longer than a year). The purpose is usually employee retention, aligning employees’ and shareholders’ interests, and attracting high-quality applicants.
Zviran offers consulting services to help design equity-based compensation policy. Services include:
- Defining eligible employee populations and the size of the grant they receive according to Zviran’s unique market data.
- Choosing the appropriate equity vehicles (Stock Options, Restricted Stock Awards, RSUs, SARs, ESPP, Phantom Stock Plans).
- Defining the vesting period, performance conditions, expiration date, method of implementation, and more.
- Defining dilution goals/limits.
- Simulation of employer costs, dilution for shareholders and earning opportunity for employees.
- Definitions regarding business scenarios (change-of-control, IPO, business spin-off etc.) and employee lifecycle (hire, refresh grant, termination of employment, unpaid leave of absence, retirement, etc.).
- Support through decision-making processes with the board of directors and investors.