Equity Incentive Plan

If you own a business you can encourage and reward the hard work of your employees with an Equity Incentive Plan, in the form of stocks. Offering stocks to employees can be an effective way to make them feel invested in the company. Typically, an Equity Incentive Plan is run by a "compensation committee" made up of members selected from your company's board of directors. An Equity Incentive Plan establishes how the committee will administer the payment of stocks, and sets clear guidelines for eligibility, restrictions, and additional controls to protect the business.

Use the Equity Incentive Plan document if:

• You're about to offer company shares to your employees.
• You need to re-work the details of your stock sharing program.