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Companies of every type including incentivize compensation features in employee compensation packages. The range of incentive compensation tools and techniques available to these companies depends on the type of entity involved.
Corporate entities have stock options, restricted stock and other forms of profit or capital appreciation rights. LLCs are even more flexible and can award a variety of forms of profit or capital rights. These alternatives, together with voting and vesting restrictions, provide companies alternatives for virtually every circumstance. But each alternative comes with tradeoffs – practical, tax and financial.
This program provides a real world guide to the incentive compensation alternatives in business entities.
Part 2 topics include:
- Use of profit interests and capital interest in LLCs, partnerships
- Exchanging incentive compensation for services
- Incentive compensation in single member LLCs
- Impact of IRC Section 409A and deferred compensation
- Employment tax considerations