Carving Up the Pie: Using Change in Control Carve-Out Plans to Incentivize Startup Employees | Practical Law

Carving Up the Pie: Using Change in Control Carve-Out Plans to Incentivize Startup Employees | Practical Law

A Practice Note providing an overview of carve-out plans and how startup companies can use these plans to retain and incentivize employees whose equity compensation has significantly decreased in value. This Note discusses issues that startup companies should consider when implementing a carve-out plan, including business, tax, and stockholder fairness considerations.

Carving Up the Pie: Using Change in Control Carve-Out Plans to Incentivize Startup Employees

by Marshall Mort, Taylor Cashwell, and Shawn Lampron, Fenwick & West LLP, with Practical Law Employee Benefits & Executive Compensation
Maintained • USA (National/Federal)
A Practice Note providing an overview of carve-out plans and how startup companies can use these plans to retain and incentivize employees whose equity compensation has significantly decreased in value. This Note discusses issues that startup companies should consider when implementing a carve-out plan, including business, tax, and stockholder fairness considerations.