Compensation Structures for Venture Capital Backed Companies : How to Structure Compensation, Stock Options, Retirement, Debt and Bonus Plans for Managemetn and Employees

by Barrett, Ross P.

• ISBN13: 9781587621802
• ISBN10: 1587621800
• Format: Paperback
• Copyright: 2004-02-01
• Publisher: West Group

Table of Contents

Compensation Generally	7	(4)
Restricted Stock to Employees	11	(15)
Use of Preferred Stock to Shelter Disproportionately Low Price to the Sweat Equity	26	(5)
Lapse of Time Approach: Incorporate and Issue Stock Early, Prior to Cash Investors	31	(2)
Stock Options	33	(11)
Deep Discount NSOS	44	(15)
An Analysis of Compensation for Senior Public Managers-and a Proposed Alternative to Stock Options	59	(20)
Stock Appreciation Rights (SARS)	79	(10)
Options on LLC Units: Difficulties in Drafting and Implentation	89	(3)
Convertible Debt Plans	92	(6)
Life Insurance (Split-Dollar)	98	(5)
Simplified Employee Pension Plans	103	(2)
Deferred Compensation Rabbi Trusts	105	(2)
The Golden Parachute Rules	107	(38)
Nondeductibility of $1 Million Compensation	145	(3)
Parachutes and the Erisa Trap	148	(2)
Sec Disclosure Rules	150	(2)
'34 Act Section 16-Impact on Options	152	(10)
Model Employment and Stock Purchase Agreement	162	(35)
Model Confidentiality and Non-Competition Agreement	197	(24)
Model Form: Employee NDA	221	(9)
Model Form: Mutual Non-Disclosure Agreement	230	(6)
Model Stock Incentive Plan	236	(45)
Model Stock Option Award Agreement	281	(25)
Model Stock Appreciation Rights Agreement	306	(7)
Model Form: Loaning Money to a C-Level Employee-Special Employment Terms	313	(8)
Model Form: Consulting Agreement (Pro-Consultant)	321
Glossary of Private Equity and Venture Capital Terms
About the Authors