Equity Compensation for Private Equity Investors and Entrepreneurs

The rules and standard techniques used to grant equity compensation have remained relatively static over the years. Recently, however, changes in the tax, accounting and securities laws and development of new techniques have led to new approaches as well as the revival of old approaches. Some of the changes, such as Internal Revenue Code Section 409A (which was adopted in 2004), have been well publicized. Others are less obvious and present both opportunities and pitfalls for the unwary. In its April 6 client alert, Goodwin Procter’s Private Equity Practice detailed recent trends and developments in the area, focusing primarily on private equity portfolio companies and private equity financings, while also drawing upon similar (and/or divergent) trends and developments as they relate to public, venture-backed and other emerging growth companies.

This post on equity was authored by Founders Workbench.

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