Equity-Based Compensation Plans-An Introduction

Today, companies with overseas operations feel the need to use equity-based compensation plans such as stock options to attract and retain skilled employees. By this means, employees receive a greater financial and psychological stake in the company’s success, while owners get the benefit of getting enhanced productivity and competitiveness from their employees. This book defends the need to give employees other forms of equity-based compensation plans as incentives such as restricted stock, phantom stock rights, stock appreciation rights, employee stock ownership plan and employee stock purchase plans. Read the appendix of this book for a survey on how companies handle the maze of taxes, accounting and legal regulations relating to equity-based compensation plans.