Employee Ownership Plan

After a recent promotion I'm in the midst of negotiations for ownership. We are privately held. I'm the first employee to negotiate for ownership - meaning I have a blank slate for how I want it to be structured. I'm concerned with a few things. I'm not really interested in having the liability of actually owning a part of the company. Also not interested in paying taxes until I realize some type of gain. Given those two points I'd like something related to phantom stock. I'm also concerned with the liquidity of the shares...when I want to sell how can I guarantee there is a willing buyer? Here's what I have so far:

Ownership form
a) Legally documented
b) Non-liability (Phantom)

Value
a) Determined by agreed upon metrics (multiple of earnings)
b) Earnings defined as: EBITDA less owner draw and benefits

Owner Draw
a) All owner draws must be base-lined at time of ownership grant
b) Any increase in draw by one owner will require disbursement to all owners based on % owned

Stock Rights
a) Buy/sell agreement allowing sale of shares at any time
b) If no owner wishes to purchase, company required to purchase value of shares within 90 days
c) First right of refusal for purchase of any available future shares
d) Rights to annual earnings equal to % of shares in company

Any thoughts on the points I have? Any thoughts on what I might be missing?

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”