Equity Comp Structures

by a searcher from Northwestern University - Kellogg School of Management

2 years ago

If anyone could provide guidance on equity incentive structures for manager/partners I’d appreciate a chat. I’m aiming to incentivize incremental value (via EBITDA growth) and trying to decide between a Profit Interest that vests upon a liquidity event or traditional Equity (capital interest). 
DM me if you could help talk through it.

1 like
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7 comments

searcher from Tel Aviv University

My two cents is don't create a too complicated incentives plan. It's easier for a rep to control revenue rather than EBITDA. I would try to aim for top line unless it incentivizes too many discounts etc.

2 years ago | like reply | 0 likes

professional from New York University - Leonard N. Stern School of Business

Matthew, is the second event on the double trigger involuntary termination upon C of C? Thanks

2 years ago | like reply | 0 likes

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