Equity Compensation Fundamentals - Private Companies
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Register
- Non-member - $2,100
- Member - $1,050
Your Roadmap to an Effective Equity Strategy
Equity compensation is an effective tool for private companies to attract and retain talent for scale by creating a shared interest in company success. However, issuing stock-based compensation presents a unique set of opportunities and challenges that private companies must face to ensure compliance and performance.
Designed for traditionally VC-backed private companies at any lifecycle stage, this course provides the path forward you need to create and optimize your equity strategies. Here you will understand how to design the right awards for your company, manage your cap table, and ensure legal, taxation, and accounting compliance.
Ideal Development Opportunity For
- Those seeking guidance on the rules for equity compensation and stock in privately held companies.
- Leaders wanting to maximize the value of their IPO.
- Professionals who wish to develop and properly manage a capitalization table.
Learning Objectives
Key questions this course will answer:
- What are the features and characteristics of the most common types of equity arrangements offered by private companies?
- What are some of the key considerations private companies need to address, such as valuation and liquidity?
- How much taxable income do participants recognize for the equity arrangements typically offered by private companies and what are the employer’s withholding and reporting obligations with respect to that income?
- What practices are necessary to ensure that equity plans comply with U.S. securities laws?
- How do companies determine and record the effect of equity arrangements on their profitability?
- What steps do companies need to take to ensure their equity plans are IPO-ready?
Course Features
- Seven expert-led modules
- On-demand to fit your schedule
- Certificate awarded upon completion
Enrollment Fee
- Members: $1,050
- Non-Members: $2,100
PLEASE NOTE: Non-members will need to create an NASPP.com account to register. Click the "Log In" button in the upper right corner and follow the on-screen instructions to establish your account.
All registrations are non-refundable.
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Contains 4 Component(s), Includes Credits
Equity Compensation Fundamentals - Private Companies | Build an understanding of the unique challenges private companies face when designing equity plans and granting specific awards.
Build an understanding of the unique challenges private companies face when designing equity plans and granting specific awards.
Explore topics including:
- Understanding fair market value (FMV & 409A)
- Understanding the equity incentive pool
- Pricing and the role it plays in your awards
- Competing with public equity compensation packages
- Liquidity practices
Time: 60 minutes
Barbara Baksa
Executive Director
NASPP
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Contains 4 Component(s), Includes Credits
Equity Compensation Fundamentals - Private Companies | Understand the unique challenges private companies face when designing equity plans and granting specific awards.
Build an understanding of the unique challenges private companies face when designing equity plans and granting specific awards.
Explore topics including:
- Understanding fair market value (FMV & 409A)
- Understanding the equity incentive pool
- Pricing and the role it plays in your awards
- Competing with public equity compensation packages
- Liquidity practices
Time: 60 minutes
Barbara Baksa
Executive Director
NASPP
Jason Mann
Content Director
NASPP
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Contains 4 Component(s), Includes Credits
Learn the legal implications of issuing shares to employees.
There are numerous legal implications to consider when granting equity. Learn the legal landscape surrounding payment types, incentive beneficiaries, and more to keep your company compliant.
Explore topics including:
- Corporate laws
- Anatomy of certificates
- Right of first refusal (redeeming, transferring, and selling shares)
- Federal and state securities laws (including Rule 701)
- Conflicts of interest and fiduciary implications
Time: 50 minutes
David Thomas
Partner
Wilson Sonsini
David Thomas is a partner in Wilson Sonsini Goodrich & Rosati's compensation and benefits practice. For more than 25 years, Dave has provided legal and practical guidance on compensation and benefits issues to companies of all sizes, including their compensation committees, boards of directors, and board special committees. Dave was selected in the inaugural class of NASPP Distinguished Equity Fellows, has been inducted as a Fellow of the American College of Employee Benefits Counsel (a national distinction for employee benefits lawyers who have made demonstrably substantive contributions to the field of employee benefits over their career) and has been recognized in multiple editions of Chambers USA: America's Leading Lawyers for Business, in which commentators praised his responsiveness, “unmatched ability to think outside the box to develop bespoke solutions,” and “strong ability to translate complicated matters in an understandable way.”
Dave spends much of his time assisting high-growth companies with compensation and employee benefits issues affecting recruiting and retention, primarily including the design and administration of equity incentive plans and employment agreements. He has substantial experience with public offerings, having represented issuers in 34 successful initial public offerings—which raised an aggregate of more than $10.6 billion—since 2010 and underwriters in an additional 26 during the same period. Some of the more notable of these IPOs include representation of Palantir in its direct listing and the issuers in IPOs for AppLovin Corporation, Forescout Technologies, BlackLine, GoDaddy, Box, Square, and Twitter.
Matthew Norgard
Partner
Wilson Sonsini
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Contains 4 Component(s), Includes Credits
Review the tax rules, implications, and reporting basics for equity awards.
Review the taxation rules, implications, and reporting basics for long-term equity compensation programs specific to private companies.
Explore topics including:
- Understanding individual award implications
- 100k rule
- Early-exercise stock options and 83b elections
- AMT considerations
- Tax reporting
- Vesting schedules
- Accelerated vesting
Time: 70 minutes
David Thomas
Partner
Wilson Sonsini
David Thomas is a partner in Wilson Sonsini Goodrich & Rosati's compensation and benefits practice. For more than 25 years, Dave has provided legal and practical guidance on compensation and benefits issues to companies of all sizes, including their compensation committees, boards of directors, and board special committees. Dave was selected in the inaugural class of NASPP Distinguished Equity Fellows, has been inducted as a Fellow of the American College of Employee Benefits Counsel (a national distinction for employee benefits lawyers who have made demonstrably substantive contributions to the field of employee benefits over their career) and has been recognized in multiple editions of Chambers USA: America's Leading Lawyers for Business, in which commentators praised his responsiveness, “unmatched ability to think outside the box to develop bespoke solutions,” and “strong ability to translate complicated matters in an understandable way.”
Dave spends much of his time assisting high-growth companies with compensation and employee benefits issues affecting recruiting and retention, primarily including the design and administration of equity incentive plans and employment agreements. He has substantial experience with public offerings, having represented issuers in 34 successful initial public offerings—which raised an aggregate of more than $10.6 billion—since 2010 and underwriters in an additional 26 during the same period. Some of the more notable of these IPOs include representation of Palantir in its direct listing and the issuers in IPOs for AppLovin Corporation, Forescout Technologies, BlackLine, GoDaddy, Box, Square, and Twitter.
Matthew Norgard
Partner
Wilson Sonsini
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Contains 4 Component(s), Includes Credits
Cover the basics of accounting for equity compensation programs for private companies.
Cover the basics of accounting for long-term equity compensation programs for private companies.
Explore topics including:
- Understanding individual award accounting implications
- The differences between public and private
- Avoiding the pitfalls of modifications
- Topic 718
- Determining reasonable valuation
- Basics of 409A
Time: 50 minutes
Don Gillotti
Associate Partner
Aon Human Capital Solutions
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Contains 4 Component(s), Includes Credits
Equity Compensation Fundamentals - Private Companies | Get the essential checklist for best practices in cap table management.
Get the essential checklist that leaders should leverage when developing best practices in relation to cap table management.
Explore topics including:
- The importance of cap tables
- Creating your cap table
- Percentage ownership
- Communicating with your stakeholders
The module will also discuss special considerations for equity programs, including:
- What information do you want to make visible to employees?
- Compliance considerations
- Organizational shifts and changes in structure
- Modification of awards
- Terminations
- How often should your cap table be reviewed?
Time: 60 minutes
Lynne Zagami
Vice President, Customer Success - Private Markets
Fidelity Investments
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Contains 4 Component(s), Includes Credits
Make sure your equity plan is ready for the transition to becoming a public company.
Learn how to prepare for an exit and arm yourself with the tools needed to make informed decisions when creating your strategy.
This module will explain the most common exit events for private companies, including traditional IPOs, direct listings, and SPACs (or de-SPAC events).
In addition, the plan will explore the following exit-related topics:
- Lock-up periods
- Financial reporting
- SEC filing requirements
- Form 144
- Section 16
- Share registration (forms: S1, S4, and S8)
Time: 85 minutes
Barbara Baksa
Executive Director
NASPP
Don Gillotti
Associate Partner
Aon Human Capital Solutions
Matthew Norgard
Partner
Wilson Sonsini
David Thomas
Partner
Wilson Sonsini
David Thomas is a partner in Wilson Sonsini Goodrich & Rosati's compensation and benefits practice. For more than 25 years, Dave has provided legal and practical guidance on compensation and benefits issues to companies of all sizes, including their compensation committees, boards of directors, and board special committees. Dave was selected in the inaugural class of NASPP Distinguished Equity Fellows, has been inducted as a Fellow of the American College of Employee Benefits Counsel (a national distinction for employee benefits lawyers who have made demonstrably substantive contributions to the field of employee benefits over their career) and has been recognized in multiple editions of Chambers USA: America's Leading Lawyers for Business, in which commentators praised his responsiveness, “unmatched ability to think outside the box to develop bespoke solutions,” and “strong ability to translate complicated matters in an understandable way.”
Dave spends much of his time assisting high-growth companies with compensation and employee benefits issues affecting recruiting and retention, primarily including the design and administration of equity incentive plans and employment agreements. He has substantial experience with public offerings, having represented issuers in 34 successful initial public offerings—which raised an aggregate of more than $10.6 billion—since 2010 and underwriters in an additional 26 during the same period. Some of the more notable of these IPOs include representation of Palantir in its direct listing and the issuers in IPOs for AppLovin Corporation, Forescout Technologies, BlackLine, GoDaddy, Box, Square, and Twitter.