Startup Essentials: Structuring Equity Compensation Wisely

Recorded On: Wednesday, March 2, 2016

Duration: 75 minutes

CLE credit is available for: Arizona, California, Colorado, Georgia, Hawaii, Illinois, Missouri, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Washington, Wisconsin.

CLE credit is being sought for: Indiana, Minnesota, North Carolina, Oregon, Tennessee, Texas, Virginia.

CLE can be self-applied for in: Florida.

Equity compensation can be particularly useful to a startup company, which may not have the cash necessary to adequately attract, retain, and motivate employees with market-rate salaries. In certain industries, it is standard practice for a startup to include equity as a part of every employee’s compensation package. To make the best use of an equity compensation program, a startup must understand the legal implications, tax consequences, and accounting treatment of granting each type of equity award.

Join Practical Law for a free 75-minute webinar in which Shawn E. Lampron, a partner with Fenwick & West LLP, and her colleague, Marshall Mort, discuss the types of equity awards commonly used by early-stage startups and highlight key reasons why certain types of awards are used at various stages of a startup’s development.

In this program, attendees will:

  • Obtain an overview of the types of equity compensation startups commonly grant.
  • Gain an understanding of the basic characteristics, Section 409A and other federal tax consequences, accounting treatment, and advantages and disadvantages of these types of awards.
  • Explore other issues a startup and its counsel should consider when granting equity compensation, including the scope of an equity compensation program and appropriate vesting conditions and valuation methods.

A short Q&A session will follow.

Shawn E. Lampron, Partner, Fenwick & West LLP
Marshall Mort, Associate, Fenwick & West LLP
Amy Adams, Senior Legal Editor, Employee Benefits & Executive Compensation Service, Practical Law
Joe Green, Senior Legal Editor, Capital Markets & Corporate Governance Service, Practical Law

Practical Law provides practical, up-to-date resources across all major practice areas to help lawyers in law firms and in-house legal departments get up to speed quickly, save time and protect the bottom line. Learn more at

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