Innovative Ways to Attract, Retain & Incentivize Key Employees

Across all industries -- and companies of all sizes -- there has been a significant struggle to attract, retain and incentivize key executives in the current economy. 

Talent is ripe, and there is a huge need for talent. 

This also means there’s competition for talent. 

So how can you attract, retain and incentivize key talent? 

Equity incentive plans offer an excellent way to attract, retain and incentivize key talent. 

Let’s face it. Increasing base salary is not going to cut it in today’s economic environment, nor is it sustainable for most companies. 

There is a huge amount of flexibility with regard to equity incentive plan offerings. This includes both “real equity” and “phantom equity”. 

What are the advantages of equity incentive plans? 

For employers, equity incentive plans help attract, retain and incentivize key executives by providing additional benefit incentives and awards for performance and/or length of service.  

Employers can offer different types of equity awards depending on the overall equity plan goals. 

There is significant flexibility for employers in determining the plan parameters, vesting schedules, and awards criteria.  

For employees, equity incentive plans offer an opportunity to earn additional benefits aside from a base salary. Employees have the ability to earn various equity awards, including stock options, stock appreciation rights and restricted stock grants. 

The possibilities are largely endless, as long as the legal rules are complied with from a plan design and administration perspective.  

What are the different types of equity incentives and related implications? 

There are several types of real equity and phantom equity options.  

Below is a helpful chart that illustrates some of the commonly-used equity incentives as well as a direct link where you can download the chart.

Commonly-Used Equity Incentives Chart