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How to Give Employees Ownership or Equity Value

By | Benefits Management, Business By The Book, Compensation Management, Finance, HR Management, Human Resources, Leadership, Leadership and Employees | No Comments

Q: When and how should I give equity or other incentives to my senior managers in order to retain them? I’m considering giving them equity, but not sure how to do that. A: While I absolutely understand the need to retain key management staff, I would be careful about giving up ownership to them and the manner in which you do so. In order to create an incentive for managers to stay with an organization and to give them some “upside”, there are basically the following options: Form a corporation and issue stock options – This is the typical way of giving equity…

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