Using Restricted Stock to Enhance Executive Compensation
and Still Save the Company Money
This is an earlier article I wrote published in Genetic Engineering News, under the title “How to Pay More for Biotech Talent . . . And Still Save Your Company Money”. Although my GEN article is targeted to executives and scientists in bio-pharm and medical device fields, the issues discussed can aid companies in all technology-based fields and others in recruitment or retention of valued personnel. My article discusses use of restricted stock and various terms to include in restricted stock plans that can enhance their benefit in delivering the largest value to the employees. These techniques include –
- Using Equity to create a Signing Bonus
- Designing stock terms to create meaningful equity
- Using tax gross ups to allow fuller access to benefits available
My GEN article also suggests to CEOs, CMOs and other senior executives, negotiating strategies for executive equity and compensation packages that strongly benefit the executive and can also produce a “win-win” with the new employer.
If questions arise or assistance in needed on restricted stock or other issues in executive compensation in your own pay package or at your company, please let me know.