Establishing an equity-based long-term incentive plan in the private company context presents unique design and planning issues, especially where the private company is not owned by a private equity sponsor (PE fund). Let’s explore various alternatives for the design of equity compensation plans, discuss the pros and cons of each, describe the general tax impact, and highlight other issues that might influence a private company’s decision to implement one alternative over another, or whether to even offer a long-term equity compensation plan at all. READ MORE