Equity-Based Incentive Consulting

Stock option plans, restricted stock plans, employee stock purchase plans, and other equity-based incentives have become integral components of employee and executive reward structures. Presidio Pay Advisors believes that properly designed equity-based incentives create a strong link between corporate, employee, and shareholder success factors and also help to retain and motivate broad employee populations and key employee groups.

In today’s regulatory environment, companies must consider a wide range of issues when designing equity incentive plans, including:

• Accounting requirements, including FAS 123r and FAS 148 issues;
• Employee and employer tax implications;
• Executive plan, key employee plan, Board of Director plan features and requirements.

In addition to helping our clients navigate the regulatory requirements of operating equity-based incentive plans, Presidio Pay also provides comprehensive consulting services associated with plan design features and implementation considerations. We assist clients with:

• Identifying and designing alternative equity incentive structures including:
  – Performance Share Plans
  – Indexed Stock Option Plans
  – Stock Appreciation Rights (SARs)
  – Performance Accelerated Restricted Stock Plans
  – Restricted Share Units
• Employer grant procedures and equity allocation structures
• Dilution and run-rate implications
• Benchmarking target grant levels
• Equity allocation and plan design for various company stages including:
  – Start-up and pre-public companies
  – Long-term privately held companies
  – Public companies
  – Distressed companies
  – Chapter 11 and post-bankruptcy companies
• Drafting all forms of equity based plan documents and ancillary agreements

Presidio Pay also possesses extensive modeling capabilities to help clients with plan design decisions based on dilution and run-rate analyses, employee and employer potential reward, and financial impact analysis including both tax and accounting implications.