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For entrepreneurs equity stakes will become liquid when there is a liquidity event, but they don’t know when, if, or how that will occur. To them, this is not a big issue-they plan to stay until that happens and maybe beyond. But for employees, the uncertainty makes equity grants far less valuable than they really are because, as we know from behavioral economics research, people vastly overweight risk and uncertainty in assessing economic value. On top of that, some plans may have grants that expire if not exercised, but if they are exercised, employees have to pay a tax now for a benefit that can’t be realized any time soon. Join Corey Rosen to discuss
more about internal redemptions, employee-to-employee sales, internal stock markets, secondary sales, including secondary markets, private equity investors, and other buyers, employee stock ownership plans (ESOPs), and more.
Key Learning Objectives- How to stay private
- How to provide liquidity for employee equity
- Issues around valuation
- What secondary investors want and need
- Can the company and/or employees be markets?
- Tax issues with liquidity options
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Corey Rosen
Corey Rosen is founder of the National Center for Employee Ownership ("NCEO"), a private, nonprofit membership, information, and research organization. Prior to founding NCEO, Mr. Rosen served as a professional staff member in the U.S. Senate, where he helped draft legislation on employee ownership plans. |
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