When building an equity compensation plan, companies have to consider which employees will be eligible to receive equity. Are you looking to develop an executive-only plan focusing on senior management or a broader program where all employees may participate? Both have their pros and cons, and pulling guidance from larger corporate goals and vision can help you lay out a plan that will drive the right results.
Communicating an equity-based compensation program requires effective collaboration of multidisciplinary internal stakeholders (e.g., finance, human resources, legal) and external service providers (e.g., brokers, transfer agent, software vendors). Thinking of each of these parties as members of your stock plan communication team will help to break up the responsibilities and coordinate efforts to work towards a common goal – increasing participant satisfaction with the equity plan.