Startup Funding Espresso Why Give Equity to Employees
Why Give Equity to Employees Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Employees are a key factor in the success of startups. Here\u2019s a list of reasons why you should give equity to employees: Recruiting -- the market is competitive, especially for quality candidates. A startup offering equity to employees will find it a competitive advantage over other companies. Retention -- equity vested over time is a useful tool for retaining employees. The employee must work a certain number of years before their shares vest. This is a key factor in building a stable workforce. Motivation -- employees who have an ownership interest in the company are more motivated than those who do not. Tax benefits for the employee -- equity compensation is taxed at long-term gains rather than ordinary income rates that apply to payroll. Tax benefits for the employer -- there\u2019s no income tax cost to the company. Consider these benefits in setting up an equity compensation plan for your startup. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .