58. Decoding Option Grants: What You Need to Know

31/10/2024 44 min Temporada 2 Episodio 58
58. Decoding Option Grants: What You Need to Know

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Episode Synopsis

In this episode we discuss: Executive compensation and option grants. We are joined by Daniel Harris, Exec Compensation Partner.Love The Operations Room? Please support us by rating and reviewing it here.We chat about the following with Daniel Harris: What to consider when negotiating equity packages.What are the different equity schemes, such as sweet equity, and their implications?When to be aware of with tax implications and when to seek expert advice.Paying attention to strike prices and their impact on the value of equity.How to align incentives and interests between founders, management teams, and employees.Is it possible to ensure alignment between company strategy and compensation structure?References www.linkedin.com/in/daniel-harris-a7333511www.pwc.comBiography I lead the Reward team in the Regions and have over 20 years’ experience of advising companies (both public and private/ private equity backed) and their remuneration committees on all aspects of executive compensation, including the design and implementation of tax efficient and commercially effective pay structures and management incentive plans in the UK and overseas.To learn more about Beth and Brandon or to find out about sponsorship opportunities click here. Summary13:56 Introduction and Relevance of the Topic02:43 Exploring Different Equity Schemes24:33 Equity Structures in Different Stages of a Company's Lifecycle26:47 Considerations for US Taxpayers in Negotiating Equity Packages30:56 Key Elements of a Good Equity Package34:13 Changes in Strike Prices and EMI Scheme in the UK36:16 Balancing Performance-Based Vesting39:45 The Benefits of Accelerated Vesting41:00 Understanding the Differences in Equity Compensation Systems41:57 Main TakeawaysThis podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy