Rewarding The Employees Who Built The Company
Client Overview
Our client is a privately held company specializing in high tech imaging in law enforcement. They have 150 employees around the world.
Client Challenges
The owner of this growing company wanted to reward those key employees who helped build the company. The challenge was to provide significant financial rewards, based on the company’s financial success.
Hiles Associates Solutions
Our solution was to implement a Stock Option Plan for key employees who were at the center of the company’s success. The plan provides key employees with annual grants of the right to purchase shares at a fixed price. The grants vest (become available to exercise) gradually over five years.
We designed the plan, developed the financial models, advised on rules, and managed the communications to participants.
Since this was a private company and there was no public market for the shares, special considerations applied. The owner wanted to control who owned shares in his company, and employees needed a way to sell their shares. We provided a custom solution to all these issues.
We help maintain the plan, with an annual update, and calculations when an employee leaves or cashes out.
Impact – Business and Individual
The Plan serves everyone well:
Our client is a privately held company specializing in high tech imaging in law enforcement. They have 150 employees around the world.
Client Challenges
The owner of this growing company wanted to reward those key employees who helped build the company. The challenge was to provide significant financial rewards, based on the company’s financial success.
Hiles Associates Solutions
Our solution was to implement a Stock Option Plan for key employees who were at the center of the company’s success. The plan provides key employees with annual grants of the right to purchase shares at a fixed price. The grants vest (become available to exercise) gradually over five years.
We designed the plan, developed the financial models, advised on rules, and managed the communications to participants.
Since this was a private company and there was no public market for the shares, special considerations applied. The owner wanted to control who owned shares in his company, and employees needed a way to sell their shares. We provided a custom solution to all these issues.
We help maintain the plan, with an annual update, and calculations when an employee leaves or cashes out.
Impact – Business and Individual
The Plan serves everyone well:
- Key employees share in the growth of the company they helped build
- The company shows rewards loyalty and shows its appreciation to those key employees, and builds a basis for employee loyalty
- The plan is funded by company growth, and pays for itself
- Participants
are rewarded when the company's succeeds