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Jan 30, 2023 | Blog, Business Law

It Doesn’t Have to be Equity


For closely held businesses – including family-owned businesses – providing equity is not always the right answer for rewarding key employees.

In the Business Law practice at WCN, we advise and counsel owners on how to achieve the goal of recognizing and rewarding key employees. Many times, the owners assume the best path is to offer equity in the business. The owners understand that this dilutes their ownership, but they often do not realize that this may complicate various other items, including their tax filings, bank loans/credit facilities and/or their ability to make major decisions related to their business.

Given the tight labor market and the risk of losing a key employee, we understand the importance of rewarding and recognizing top talent in your business. Developing a compensation plan for key employees should be part of a strategic plan to mitigate risk and align business goals with compensating key employees, including an incentive plan.

Read how we helped a services firm develop a bonus plan for their top three executives while not giving up equity in their business.

Contact us if it’s time for you to develop an updated compensation plan, including incentives for your key employees. With the labor shortage, a well-defined, clear plan can be an important retention strategy. Our business law attorneys are here to help you achieve your goals while protecting your interests.

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