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What is an employee retention or M&A carveout plan?

Startup Company Lawyer

I was speaking at an event last month to a group of CEOs and was surprised by the number of CEOs that were worried about the value of their common stock in a M&A transaction. Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless.

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Should You Offer Equity Compensation to Employees?

Up and Running

More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary. Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options.

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