Give Me Your Stock and Nobody Gets Hurt

Feb 11, 2013

Sometimes key employees do demand to have a piece of the action, but are they really asking for a share of ownership, or do they just want a significant share of the profits and some recognition. Looking at the situation from our business-owner clients’ viewpoint, they often want to “reward” key employees. To a business owner, “ownership” is the ultimate reward, so he (or she) often concludes that transferring stock is an appropriate solution. But for a key employee, sharing in company growth is usually reward enough. Before you start giving or selling away part of your company, take a look at exactly what that means and then explore other strategies that are available to you. More importantly, find out what both you and your key people are trying to accomplish before offering to give or sell stock to them. Read more ...

Category: Estate Planning

Joan M. Ridley, CBA, CEPA, CFP™

Joan RidleyPresident of Business Wealth Solutions, a business consulting firm.

"We have identified numerous opportunities to protect and maximize corporate wealth both now and in preparation for ownership transition. In this economy, human and intangible capital are major corporate assets. Absent proper planning, business owners could leave dollars on the table, and face the risk of actually losing their unprotected assets and hard-earned wealth."

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