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Articles

Issuing Equity to Employees

May 11, 2012
In their May 8 "Risky Business" article for the Daily Journal of Commerce, Darcy Norville and Michael Millender discuss the merits and drawbacks of issuing equity to employees. Offering an ownership stake in the company can be an appealing way for companies to attract and retain key employees, but it's not a move that should be taken lightly. Employee ownership can create management problems and produce unintended tax and liquidity consequences for both the company and its employees.