https://berkonomics.com/?p=3615&utm_source=rss&utm_medium=rss&utm_campaign=why-not-share-your-liquidity-success-with-those-who-got-you-there Dave Berkus' business insights Mon, 12 Nov 2018 18:27:30 +0000 hourly 1 https://wordpress.org/?v=6.9.4 https://berkonomics.com/?p=3615&cpage=1#comment-122365 Mon, 12 Nov 2018 18:27:30 +0000 https://berkonomics.com/?p=3615#comment-122365 Dave, very good and useful post. I thought about this issue when we started my company (optimist as always). As an LLC we couldn’t have a stock-option plan but we instituted a “key contributor award”: it promised to award cash bonuses at liquidity as if employees were phantom part owners. We’ve had a successful exit recently and I am happy that the employees got cash awards in addition to continuing (and, hopefully, more promising) long-term employment. A happy story except there was no way to minimize income tax impact.

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