Negotiating Favorable Executive Equity Terms in an LLC – Capital vs. Profit Interests

Two weeks ago, on Sunday April 20, 2022, CEOWorld magazine published an article I wrote on “Negotiating Favorable Executive Equity Terms in an LLC – Capital vs. Profit Interests”

This new article is designed for CEOs, C-level and senior executives, who receive a job offer from a limited liability company where LLC equity will comprise an important component of your executive compensation package. Most senior executives are familiar with executive stock and stock options, including ISOs and non-qualified option grants offered by corporation employers.  But how do you evaluate equity that is not stock or stock options? What issues should you be concerned about when your executive equity package is comprised of LLC “member units”, called profits interests or capital interests?  

This article will cover issues important to the executive when your equity compensation is units in an LLC, including

• The difference in rights of the two kinds of LLC interests – profits interests and capital interests,

• The difference in taxation of profits and capital interests,

• The advantages that an LLC profits interest can offer over a corporation’s equity interest, whether stock or options, if significant equity appreciation is likely,

• The importance of determination of profit interest threshold amount,  

• Important protections to assure your share of the value appreciation if the LLC succeeds,

• Other valuable protections to assure your right to a cash payout with others if the LLC succeeds.

My article concludes with discussion of key terms to watch for in the LLC operating agreement.  My article stresses the importance of negotiating in your own equity grant, job offer or employment contract that those key fixed Operating Agreements terms will be applied in a manner to assure your reasonable protections and the benefit of your bargain in accepting the job offer with this LLC.

To see my full CEOWORLD magazine. article, go to LINK:
https://ceoworld.biz/2022/04/20/negotiating-favorable-executive-equity-terms-in-an-llc-capital-vs-profit-interests/

Or on my website at https://www.executiveemploymentattorney.com/negotiating-favorable-executive-equity-terms-in-an-llc-capital-vs-profit-interests/

This was my 37th article published in CEOWORLD since 2016.  Previously, the editor advised that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  

On its own initiative, CEOWORLD magazine created on their website a library of Robert Adelson published articles. You can peruse this library and/or read as many of my 37 published articles as you wish. See https://ceoworld.biz/author/robert-adelson/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

https://www.linkedin.com/company/ceomagazine/

It is my hope that this article will be of benefit to CEOs, C-level and senior executives who, at some point in your career, are offered equity interests in an LLC and need to know what to watch out for also what opportunities LLC interests can offer. Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me at 617-875-8665.

Executive Contract Terms to Negotiate with Your Prospective Employer

On Tuesday June 22, 2021, the website Ivy Exec published under “Career Advice” an article I wrote on “Executive Contract Terms to Negotiate with Your Prospective Employer”.

 

This new article is designed for CEOs, C-level and senior executives, who are sometimes neglectful of their own interests and might be tempted to accept the assurance from a prospective employer that the job offer terms are just standard.  But executive contract terms are not standard.

My article discusses critical contract terms that, as a senior executive, you should consider negotiable to assure you are receiving fair financial treatment and to provide important protections to your career path and reputation.  I suggest negotiation strategies for key contract terms including: 

• Signing Bonus – to make you whole for what you are giving up from your job and also compensate you for the risks you are taking going into a new situation where you will have to prove yourself yet again,

• Meaningful Equity – giving you a stake in the company sufficient in size and upside potential to justify the move.

• Tax-favored Equity – with my structuring suggestions to maximize your take-home pay.

• Restrictive covenants – NDAs limited to not bar you from future utilization of  your prior knowledge and connections, Non-competes limited so no significant detour is created to the expected path for your future career growth,

• Severance triggers – to allow you to quit for good reason if the company fails to live up to promises you relied on accepting the offer;  

• Robust severance terms – with not only severance pay but continuation of health benefits, prorated bonus and equity acceleration.

My article then concludes with a discussion of other non-contract factors that go into the decision to accept a job offer such as compatibility with company, fit of skills and personality, and your belief in company prospects.  

But remember, even where you see a good fit going in, things can change: so, having a good contract is an important protection against your champion leaving or other unforeseen developments.

To see my full article, as published in the “Career Advice” section of the Ivy Exec website, go to LINK: https://www.ivyexec.com/career-advice/2021/executive-contract-terms-to-negotiate-with-your-prospective-employer/

 Or on my website at https://www.executiveemploymentattorney.com/articles-section/executive-contract-terms/

IvyExec hosts articles and webinars from experts in the career, leadership, and business spaces who wish to share their knowledge with our audience.  In April 2021, I was invited to write for IvyExec since it seeks original content on the topics of career development, leadership, and business strategy as it applies to senior-level and C-Suite professionals.  IvyExec blog posts and webinars are shared with its community of more than 2 million members on its website, in its newsletter, and on its social media channels.  https://www.ivyexec.com/career-advice/write-for-us/

It is my hope that this article will be of benefit to CEOs, C-level and senior executives who are contemplating a new job offer or employment contract and want to assure the key need financial terms and career protections are in place.  This article suggests to you what is negotiable and that it may be wise to seek these items even when you feel confident the job is a good fit for you.  Because sometimes, your champion may leave or other things might happen – so that, at that point, it might be comforting to you to know you have in writing critical contractual protections.

So, my hope is that this article will offer insights on these important matters. Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me.

Don’t Let Misalignment in Executive Compensation Create Your Own “Black Sox Scandal”

 Last Wednesday, on March 31, 2021, the day before Major League Baseball’s Opening Day for the 2021 baseball season, CEOWorld magazine published an article I wrote on “Don’t Let Misalignment in Executive Compensation Create Your Own “Black Sox Scandal”.

This new article is designed for CEOs, C-level and senior executives, who may face misalignment in the structuring of their executive compensation, incentive and performance-based compensation.

The article first discusses misalignment as commonly mentioned that can harm the interests of investors, owners and shareholders, where executive compensation incentives revenues and earnings per share that can encourage acquisitions that can benefit CEOs but not add long term value and might actually harm the interests of the investors.

My article then moves to discuss the less often recognized issue of misalignment that can harm CEOs, C-level and senior executives. Major misalignment of executive compensation is discussed in the three circumstances, as follows:

• Added performance targets are set even after liquidity occurs as approved by the investors,
• A major portion of equity is tied to remaining in the position until liquidity occurs, and
• Tying an entire bonus to the achievement of a single fixed objective, where the owners have significant discretion to limit or even eliminate the executive’s ability to achieve that sole objective.

I timed publication of this article to coincide with Major League Baseball’s Opening Day, because the 3rd and last example of misalignment harmful to executives, and certainly one of the most flagrant, was the root cause of the biggest scandal in American sports history, when Chicago White Sox players accepted bribes from gamblers to intentionally lose the 1919 World Series. This “Black Sox Scandal” offers a vivid demonstration how such executive compensation misalignment can harm both executives and players in this case and also the company, owner and other stakeholders (in this case the fans) as well.

My article then ends with recommendations for executives to adopt in their executive compensation negotiations to avoid harm from such destructive misalignment,
To see my full CEOWorld magazine. article, go to LINK: https://ceoworld.biz/2021/03/31/dont-let-misalignment-in-executive-compensation-create-your-own-black-sox-scandal/

Or on my website at https://www.executiveemploymentattorney.com/dont-let-misalignment-in-executive-compensation-create-your-own-black-sox-scandal/

This was my 32nd article published in CEOWORLD over the last five years. Previously, the editor advised that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.
See: https://ceoworld.biz/author/robert-adelson/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.
CEOWORLD magazine | LinkedIn

It is my hope that this article will be of benefit to CEOs, C-level and senior executives who are engaged or will soon engage in negotiations over the terms of their executive compensation, incentive compensation and performance compensation. It is my hope that this article may be helpful to you to avoid executive compensation misalignment potentially harmful to the executive. Feel free to share this article. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Working Remotely as a C-level Executive – Opportunities and Considerations

Last Thursday, on October 2, 2020, CEOWorld magazine published an article I wrote on “Working Remotely as a C-level Executive – Opportunities and Considerations.”

This new article is designed for designed for CEOs, C-level and senior executives, dealing with the negatives of the Covid-19/Coronavirus pandemic on many businesses  and executive employment situations, but also giving rise to new opportunities.

The article offers illustrations of how remote zoom meetings are aiding non-profit groups and client development, and then moves to how those same techniques are aiding C-level and senior executives conducting nation-wide job searches for new executive positions.

Then, my article suggests techniques to build a comfort level with prospective employers, for those executives who would like to take up an executive employment opportunity as a remote CEO or C-level executive, including the following negotiation strategies:

1. Negotiate initial consulting to get to lead to your next CEO job offer;
2. Negotiate for temporary relocation to build company comfort level;
3. Use hazards of air and distance travel to reduce on site presence even with temporary relocation;
4. Make executive compensation and equity concessions now to gain the remote position, with the expectation of being made whole in a later retention agreement;
5. Assure your remote contract provides requisite online connectivity and necessary tools to enable your remote operation.

To see my full CEOWorld magazine. article, go to LINK:

https://ceoworld.biz/2020/10/02/working-remotely-as-a-c-level-executive-opportunities-and-considerations/

 Or my website at https://www.executiveemploymentattorney.com/working-remotely-as-a-c-level-executive-opportunities-and-considerations/

This was my 30th article published in CEOWORLD over the last five years.  Previously, the editor advised that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  See https://ceoworld.biz/author/robert-adelson/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

https://www.linkedin.com/company/ceomagazine/

It is my hope that this article on the new COVID-19 inspired opportunities opening up across the US to CEOs, C-level and senior executives is timely and will be of benefit.   Hopefully, the topics I discuss including to conduct nationwide job searches, to interview and take positions in desired urban centers and also in more others locations, and to do all that without the need to even leave your home office or local satellite office, and finally, the chance to work remotely and effectively and to negotiate the right terms to secure this desired employment – will be of benefit to the CEO, C-level and senior executive clients I represent.  Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me.

Executive Employment Agreement – An Overview for the Newly-Minted CEO or C-Suite Executive

A week ago, on March 31, 2020, CEOWorld magazine published an article I wrote on “Executive Employment Agreement – An Overview for the Newly-Minted CEO or C-Suite Executive”.  The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.

This was my 26th article published in CEOWORLD. Earlier this year, the editor advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field. The magazine has also created a library of my articles on its website, where you can click on and access any of my more than 20 articles with CEOWORLD, published in recent years beginning in 2016.  See https://ceoworld.biz/author/robert-adelson/

This article, my most recent, published March 31st, is designed for CEOs, C-level and senior executives, especially those who receive an executive job offer or employment contract for their first CEO or C-level position.  The article provides answers and explanations on these important questions:

• What is an executive employment agreement?
• Why is this agreement important to the company?
• Why is this agreement important to you?
• What are the key terms and conditions that you should focus on?
• How do you achieve success in negotiating these executive contract terms?

The article also includes a brief discussion of key terms to seek in a CEO or C-suite employment agreement including terms on the following:

• Position, duties and authority,
• Executive compensation and bonus structure,
• Tax-favored executive equity and/or LTIs,
• Severance terms and triggers,
• Noncompete and other restrictive covenants.

To see my full CEOWorld magazine. article, go to LINK:

https://ceoworld.biz/2020/03/31/executive-employment-agreement-an-overview-for-the-newly-minted-ceo-or-c-suite-executive/

Or on my website at https://www.executiveemploymentattorney.com/executive-employment-agreement/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

https://www.linkedin.com/company/ceomagazine/

The editor has also advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  See https://ceoworld.biz/author/robert-adelson/

It is my hope that this article will be helpful to newly-minted CEOs, COOs, CMOs, other C-Level and senior executives to understand the importance of their first executive employment agreement and to aid them in the negotiation for appropriate terms commensurate with the position each is offered. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Author: Robert Adelson

Robert Adelson has been a corporate and tax attorney since 1977. He began as an associate at nationally prominent New York City “mega” law firms, first at the Wall Street firm Dewey Ballantine Bushby Palmer & Wood and later at the Park Avenue firm Weil Gotshal & Manges. In 1985, Adelson returned home, where he has since established himself as a respected Boston business attorney. He has attained partner at several small and midsize Boston law firms, most recently at Lawson & Weitzen LLP and then Zimble Brettler LLP, where he was a partner from 1994 to 2004 before becoming a partner at Engel & Schultz LLP from 2004 to 2019. With the breakup of that firm over semi-retirement of senior partners, Robert Adelson formed the firm Adelson & Associates, LLC, where he is the principal, that commenced operations 1/1/2020.

Restricted stock can be offered in lieu of cash to deliver immediate value with a strike price

Restricted stock can be offered in lieu of cash to deliver immediate value with a strike price much less than current fair market value. For senior recruits, technical or executive, you want to offer more to beat the competition – restricted stock does this. Robert Adelson, an executive compensation attorney, negotiates executive compensation; in one representative case, he worked with executive Steve Miles* to set up a vesting schedule to later grant him compensation in the form of stock.

By using its stock, the company avoided cash cost, and stock offers key advantages that make equity more valuable to employees than cash. Some of these benefits are:

• Pre-IPO stock is valued at discount, and all stock is awarded without brokerage charge;
• Stock offers the potential for considerable appreciation that cash lacks;
• Appreciation is taxable at lower capital gains rates of 20%, with no withholding;
• Stock offers the potential for future roll-over so that tax may be deferred indefinitely.

In addition, restricted stockholders usually provide voting rights. As a result of the benefits of restricted stock, the use of this form of employee compensation has become very popular. Since the issue of founders' shares is deductible, the company can save money that would have gone to taxes by using stock for pay. The tax windfall can also be used creatively to enhance efforts to recruit or retain key people. This is done by sharing the company's tax windfall with employees. As an executive employment attorney, Robert Adelson works with C-level executives everyday and sees that when growth is the priority, cash savings are important, and building the team is critical – stock options provide lucrative advantages for both the company and the executive.

When working with executive Steve Miles, Robert Adelson negotiated his employment compensation and set up a several year vesting plan with attainable restrictions. This allowed the company to avoid cash cost and gave Mr. Miles compensation to work and look forward to down the road. Attorney Adelson also worked with the Company to grant Mr. Miles voting rights, like any other shareholder would have. A main advantage with restricted stocks is that they differ from other stock options and still retain some value if the price were to go down.

Attorney Robert Adelson frequently represents employees and executives negotiating their executive contract terms, stock, options, relocation, non-competes, termination and separation agreements. He also represents startup and smaller companies in software, medical device and other technology-based fields, independent consultants with compensation and stockholder arrangements, incorporation and liability protection, intellectual property protection, and in vendor, client and subcontractor contracting arrangements. Executive Steve Miles was a key employee and through the negotiation of his executive employment agreement; Attorney Adelson was able to grant him a lucrative and flexible form of executive compensation.

*All dates, client’s names and companies have been altered to keep confidentiality.

The “golden keys” that unlock “golden handcuffs”

Executive employment agreements and equity arrangements are the “golden keys” that unlock “golden handcuffs”. Signing bonuses serve as the key to open the door to hiring. Vesting options, bonuses and other “golden handcuff” benefits make executives more reluctant to leave their current position for a new one. However, signing bonuses are often used as a tool of persuasion – urging an executive to sign with a new company. Signing bonuses are crucial when accompanying a job offer that has a lower salary than an executive wants.

CEO, Maria Leone* sought out the counsel of Attorney Robert Adelson who helped her negotiate an increased signing bonus with a new firm that expressed interest in hiring her. Maria Leone was currently working as a CEO at a NY ad agency where she made a comfortable salary with foreseeable bonuses and vesting options, however when a young, rising agency (we will call Marketing X*) expressed interest with a higher salary Maria grew interested. Since the Marketing X was still young, and the salary the company was offering was not substantially higher Maria wanted to explore her options and negotiate her executive contract terms.

Attorney Adelson negotiated the executive’s employment agreement as well as her equity arrangements, convincing Marketing X to set up a package with stock and options to reward Maria’s loyalty later down the road. Attorney Adelson also negotiated a substantial increase in the signing bonus and an increased salary as well. The signing bonuses and equity arrangements that Marketing X arranged from Maria Leone helped make her particular transition between companies smooth and lucrative, making Maria whole for what she lost when leaving her current position.

Robert Adelson was successful with this representative case because he applied his over 30 years experience, care and time to help Maria Leone achieve a more desirable position. As a Boston executive employment attorney, with clients across the country, Attorney Adelson has helped many executives negotiate signing bonuses and employment agreements. This representative case highlights the success that Attorney Adelson’s executive compensation negotiations led to for CEO Maria Leone.

*All dates, client’s names and companies have been altered to keep confidentiality.

Essential Employment Contract Terms for Medical Device and Biotechnology Executives

On December 29, 2018, CEOWorld magazine published an article I wrote on “Essential Employment Contract Terms for Medical Device and Biotechnology Executives”    The magazine advised me that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website. 

This article was designed for CEOs and other C-Suite, VPs or other senior executives in Medical Device, Biotechnology and other life science companies who, when negotiating a new job offer or employment contract or terms of executive compensation, need to give attention to essential employment terms in these fast growing and changing industries.

My article indicates how in these negotiations, the executive should seek key executive employment terms in the following important areas:

• Signing bonus to at least make you whole for anything you are giving up,
• Performance targets geared to your type and stage of life science company and its exit goals,
• Equity in scope and form matched to your position, stage of company and potential tax issues
• Relocation and other expenses (e.g. maintaining your M.D. license) again to keep you whole when you change companies.

The article also discusses executive severance terms and triggers for your protection in case changes necessitate you to change companies in the future.

To see my full CEOWorld magazine. article, go to LINK:  https://ceoworld.biz/2018/12/29/essential-employment-contract-terms-for-medical-device-and-biotechnology-executives/

Or on my website

https://www.executiveemploymentattorney.com/essential-employment-contract-terms-for-medical-device-and-biotechnology-executives/

With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

It is my hope that this article will be helpful to CEOs and other senior executives in the medical device, biotechnology or other life science industries who are negotiating new executive job offers, employment contracts or executive compensation packages and should pay attention to the essential contract terms discussed in my article. If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.


About Robert A. Adelson, Esq.
Robert A. Adelson, Esq. is a corporate and tax attorney and partner at Engel & Schultz LLP, Boston, Massachusetts. He represents C-Level executives and key employees in negotiations over executive employment terms, equity, compensation, relocation, retention and separation agreements, severance packages, and where necessary suits over wrongful termination. 

Negotiating the Right Executive Compensation Package for Yourself

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On October 30, 2018, CEOWorld magazine published an article I wrote on “Negotiating the Right Executive Compensation Package for Yourself”    The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.


This article was designed for CEOs and other C-Suite, VPs or other senior executives who when negotiating a new executive job offer or employment contract need to give attention to the executive compensation package that it contains all the key features to fully compensate the CEO or senior executive for the critical services he or she provides to the company and its owners.

My article further indicates how in these negotiations, the executive should seek to accomplish several important and distinct goals, including to

• Secure your own basic financial needs,
• Secure a highly valuable equity stake in the company for yourself,
• Negotiate the key terms for equity or phantom stock, and
• Create the right executive bonus plan and other incentives that align with the company for growth.

The article also discusses how the CEO or senior executive can use these goals and means of achieving them to strengthen his or her position at the company.  These negotiations can serve to demonstrate to your new employer your abilities as a skilled executive capable of managing complex situations that affect himself or herself directly.

To see my full CEOWorld magazine. article, go to LINK:  https://ceoworld.biz/2018/10/30/negotiating-the-right-executive-compensation-package-for-yourself/
Or on my website
https://www.executiveemploymentattorney.com/negotiating-executive-compensation-package/

With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

It is my hope that this article will be helpful to CEOs and other senior executives who are negotiating the important executive compensation package and equity terms of a new job offer or renegotiation of executive contract terms with your current job or under an executive retention agreement if your company is in play. If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.

Using an Executive Severance Agreement to Protect Your Employment, Career and Reputation

On September 25, 2018, CEOWorld magazine published an article I wrote on “An Executive Severance Agreement Protects Your Employment, Career and Reputation” The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.

This article was designed for CEOs and other C-Suite, VPs or other senior executives who, when negotiating a new executive job offer or employment contract, need to give attention to severance terms even where the employment is stated to be “at will.”  Also,  even if severance is not included at the outset, it can be negotiated later, even at the time of employment termination.

My article further indicates how severance agreements address continuation of salary and also address other issues that might be very important to the executive including

• Continuation of health and other key benefits,
• Payment of earned bonus and prorated bonus,
• Vesting and other rights in stock, options, RSUs or phantom stock of the company,
• Protections for the executive’s reputation.

The article also addresses items the employer may seek including non-competes, releases and waivers and negotiation strategies for executives on such items.

To see my full CEOWorld magazine. article, go to LINK:  http://ceoworld.biz/2018/09/25/an-executive-severance-agreement-protects-your-employment-career-and-reputation/
Or https://www.executiveemploymentattorney.com/articles-section/executive-severance-package/

With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

​It is my hope that this article will be helpful to CEOs and other senior executives who are seeking to negotiate severance terms into their job offers, employment contracts or separation agreements, or need help on particular terms of the severance package. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com or call 617-875-8665.

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Becoming CEO of a Startup — Key Employment Contract, Equity Terms and Other Considerations

Last Tuesday, on April 24, 2018, CEOWorld magazine published an article I wrote on “Becoming CEO of a Startup — Key Employment Contract, Equity Terms and Other Considerations.” The magazine advised me that I can use “Featured in the CEOWORLD magazine” and their “Logo” on your website.

This article was designed for CEOs and other C-Suite, VPs or other senior executives who have achieved a level of success and who are tempted to leave an established company to take on the challenge of leading a startup, either a well-funded startup on the ground floor or an up and coming startup to the next level.

Becoming a startup CEO

My article discusses key employment contract and equity terms, including

• Amount and terms of equity to seek,
• Tax structure of equity if you are joining a ground floor startup,
• Tax structure of equity if you are joining a scale-up startup,
• Special severance terms for startup executive employment contracts.

The articles also suggest other important considerations to include in due diligence and employment contract terms including shared vision, representations as to current financial position and other representations the executive is relying upon to take the position.

To see my full CEOWorld magazine. article, go to LINK: http://ceoworld.biz/2018/04/24/becoming-ceo-of-a-startup-key-employment-contract-and-equity-terms-and-other-considerations/

or my website at https://www.executiveemploymentattorney.com/articles-section/becoming-ceo-of-a-startup-key-employment-contract-and-equity-terms-and-other-considerations/

It is my hope that this article will be helpful to CEOs and other senior executives who are considering joining a funded startup company, whether at the ground floor or in the scale-up stage. If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.