Considerations When Spreading Equity to Key Employees or Partners

Oftentimes, entrepreneurs are very protective of their equity, and try to keep 100% ownership for themselves. Usually, this is fine, provided that important key parties (e.g., employees, partners) are appropriately motivated to help you succeed. Sometimes that motivation comes in the form of cash compensation (e.g., lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity-linked incentives (e.g., stock, options, warrants).

Read the rest of this post in Forbes, which I guest authored this week.

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