Your best people have options. Give them a reason to stay that a competitor can't match.
A complete guide to designing incentive plans that retain key leaders and build transferable value, without giving away the company.
We understand
You've got people you can't afford to lose. Maybe one has already had a conversation with a competitor. Maybe you're years from a transition and need the team locked in. Either way, you know cash bonuses aren't creating the long-term alignment you need.
Why this kit exists
Byron McFarland has designed equity compensation plans for closely held businesses for over 30 years, across every major entity structure and deal type. This kit contains the same frameworks and comparisons he walks through with clients.
After reading this kit, you'll know how to
1
Understand the difference between phantom stock, SARs, and restricted stock, and which one fits your goals
2
Know the design decisions that separate a plan that retains people from one that creates entitlement
3
See the tax, cash flow, and control implications before you commit to a structure
What's in the kit
6 white papers + 7 articles, free
White Papers
Understanding Phantom Stock Plans
A ground-level introduction to phantom stock: what it is, how it works, and why business owners use it instead of giving away real equity.
Phantom Stock Plans: The Future of Rewards
Why phantom stock is replacing traditional equity awards in private companies, and what that shift means for owners who want to retain top performers without diluting ownership.
Phantom Stock Plans versus Restricted Stock
A side-by-side comparison of phantom stock and restricted stock, covering tax treatment, ownership impact, and practical administration for closely held businesses.
Phantom Stock with Profits Interest
How to combine phantom stock with a profits interest bonus to create a hybrid incentive plan, specifically designed for LLCs and partnerships where traditional stock plans don't apply.
Small Business Guide to Performance Equity
A decision framework for small business owners evaluating phantom stock, SARs, restricted stock, and other equity-based incentive approaches.
Stock Appreciation Rights: Creating Value
How stock appreciation rights work, when they make sense as a standalone plan, and how to design them so participants and the company both benefit.
Articles (7)
What Is Performance Equity Compensation?
Performance equity compensation defined in plain English. What it is, how it differs from bonuses, the main instruments, and why closely held businesses use it.
How to Retain Key Employees Without Giving Up Ownership
Key employees don't leave just for money. Learn how phantom stock, SARs, and performance equity can retain your best people without diluting ownership.
Three Questions to Ask Before Designing an Equity Compensation Plan
Before designing an equity compensation plan, ask these three questions. The wrong plan for the wrong reason causes more problems than it solves.
+ 4 more articles included
Losing a key person costs more than their salary. It costs momentum, client relationships, and institutional knowledge. The cost of the wrong plan is even worse: confusion, entitlement, and legal exposure. This kit helps you get it right the first time.
Get the Equity Compensation Kit
Six white papers and seven articles. The full landscape of equity compensation for closely held businesses.
You'll know which plan type fits your situation, what questions to ask before designing it, and how to avoid the mistakes that trip up most owners. You'll be ready to have a real conversation with an advisor, not a sales pitch.
