Does anyone have experience with employee stock incentives?

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February 19, 2023

by a searcher from Western University in Waterloo, ON, Canada

I own a med-spa in Canada, looking to use this as a platform location, with the plan to expand by purchasing smaller locations. We're considering giving stock to key employees and to owners of the acquired locations. Anyone have experiences (good and bad) doing this?

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Reply by a searcher
from New York University in United States
It's a good idea and it can be a really nice gesture to key employees who've never owned equity before. There are a lot of things to think about, but just a few quick things 1) make sure the $ amount is somewhat meaningful to that person 2) need to think through messaging and explanation of the equity opportunity 3) think about vesting / clawback provisions.

In the med-spa space, the owners probably have a good understanding of the value of stock -- I wonder if for other employees, stock is more meaningful vs. cash incentive / sales plans.
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Reply by a searcher
from University of Florida in Washington, DC, USA
No personal experience doing this, but this Jim Sharpe article makes the rounds every few months, and in line with Joe's comment. In case you haven't seen it: https://jimsteinsharpe.com/z-runningsme/sharing-profits-not-equity/
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