How equity compensation enhances business value
Performance equity compensation serves as a powerful motivator, driving participants to push for their goals with the knowledge that their efforts will be rewarded in a meaningful and enriching way. Drawing inspiration from expectancy theory, this form of compensation aligns individual aspirations with organizational objectives, creating a strong sense of purpose and direction. By linking performance to tangible rewards, such as equity stakes, businesses can attract and retain top talent while fostering a culture of excellence and achievement.
Why do businesses use equity compensation?
Motivate
We believe in the power of psychology when it comes to designing equity comp plans. Motivating your leadership team is crucial to achieving your company goals. By incorporating expectancy theory into our plan designs, we tap into the psychology of motivation. Experience the transformative impact of our approach as we leverage human nature to design plans that inspire and motivate your team to reach new heights of success.
Retain
In today’s competitive market, retaining high-performing talent is more crucial than ever. We recognize the value of your key players and the significant costs associated with replacing them. By rewarding results with a share of the business value, you create a powerful incentive for your top talent to stay and continue driving success. Our equity compensation plans build a financial “moat” around your team, ensuring their commitment and loyalty.
Recruit
In the ever-evolving talent landscape, recruiters are using equity as a “hook” to captivate high achievers. Recognizing the allure of equity compensation, businesses entice top talent by offering a stake in the company’s success. This approach serves as a compelling incentive, catching the attention of top performers and positioning organizations as enticing career destinations. Stay ahead of the competition and secure top talent by leveraging the irresistible appeal of equity compensation.
Rating The McFarland Group a solid 9 out of 10, I can confidently say that the quality outcome we achieved was directly tied to their expert guidance. A special shoutout to Connor Lacy for his exceptional management of the entire process.
Why choose The McFarland Group?
The McFarland Group stands out as your trusted partner for equity compensation plans because:
We bring creative expertise.
With a track record of crafting innovative plan designs, we bring a fresh perspective and creativity to tailor solutions that align rewards with goals.
We understand motivation.
Our main goal is to create plans that inspire and engage your team, ensuring the rewards are meaningful and are in alignment with your most important business outcomes.
We provide ongoing support.
Building enduring relationships with our clients, we offer continuous support through regular reviews, participant communication, and dynamic financial modeling, to ensure your plan remains updated.
We highly recommend The McFarland Group to any business owner looking for equity compensation planning. They asked us a lot of questions to understand our situation very thoroughly, then presented us with a myriad of options so we could design a plan that made the most sense and helped us make important decisions.
Our proven process
Business succession planning and consulting
Begin with a
9-point assessment
Conduct a goal clarification interview
Complete a
financial analysis
Create a plan design
Prepare legal agreements
Present a plan to educate participants
Provide ongoing support
Streamside Tips
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Phantom Stock – A Tool for Incentive Plans and Exit
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