Anyone develop an ESOP?
 

As we are expanding the G9Girl staff, we need to develop an employee stock option plan. I've also heard it called a stock purchase plan.

Does anyone have expertise/boilerplate/general advice?

I'd like to set aside a pool of 10% of the company for general employees which will vest over time. I'd also like to set aside a separate pool for high profile additions to the company.

TIA.

Shaun,

My wife was self employed as recently as last year doing just this type stuff. I'll ask her what she's got available.

Mark

For a small private company, you might consider using phantom stock that vests and becomes real equity if the company is sold or upon some other triggering event. It allows key employees to feel invested, but avoids pitfalls for you of having a bunch of tiny percentage minority shareholders. Depending on your state laws, they may end up with rights as minroity shareholders that you don't want to give up. Also, being a minority shareholder in a private company is pretty worthless. The only real benefit for them is a nice payday when the owner sells out.

Thanks Mark, look forward to any advice she can provide.

Jon, I really like the idea of phantom stock a lot. And yes, it's all about the big payout wtih a feeling of ownership along the way. I follow the "share the company financials" philosophy to get and keep people invested in the big picture.