Equity Based Compensation

Equity Based Compensation Programs
Creating Meaningful Ownership in the Organization

Equity Based Compensation Programs seek to create a sense of ownership, a stake in the long-term value of the organization or a tool to attract and retain critical talent. Further, companies use these programs to create a balance between short-term, operational results and long-term, strategic value creation. Ownership provides more than just a paycheck relationship with employees; it reinforces a mutual commitment to the long-term success of the organization.

Our objective is to help you develop a program that provides you with a strong competitive advantage and provide a clear “return on investment.” We understand the legal, administrative and organizational implications of these programs and we can help you realize the benefits that go with a renewed sense of ownership, commitment and understanding of what makes your organization successful.

Our consulting process will address three major stages:

  1. Purpose – need assessment, key objectives, principles, award criteria
  2. Design – equity vehicle, target value, terms, conditions
  3. Plan Administration – plan approval, policy interpretation, on-going administration

Specifically, Wilson Group will work with your organization to:

  • Identify the philosophy and key objectives for creating ownership and long-term commitment to the organization.
  • Assess the effectiveness and competitiveness of existing programs in relation to your peer group, industry or other key competitors.
  • Determine the guidelines and criteria to be used for these programs.
  • Develop specific programs so they are as effective as possible in achieving desired objectives.

Client Illustration

We developed an executive compensation for a rapidly growing technology company that changed the model of equity ownership. When the executives met high market growth performance objectives, they received greater ownership. This directly linked the value of the company with the ownership position of the executives. This minimized the dilution and costs of equity awards. Then, we develop new guidelines for awarding actual and simulated ownership shares to new hires, emerging leaders, top technical contributors, and high performers. This enabled the company to reinforce a spirit of ownership and create a true win-win result for owners, executives and all employees.