I'm creating a compensation plan to hire a CFO. We can't afford a market salary, so trying to attract great talent using an Equity plan of some type.
Any suggestions on ways this has been done on search-acquired businesses?
Looking for experiences and feedback. Thanks!
Paying Management in Equity
by a searcher from Georgetown University
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Equity can work depending on the nature of your business. Past/future performance, industry, etc.
If the business will grow heavily in the future, I'm assuming it will if you're encentivizing with equity. Then equity maybe the most expensive form of financing. Have you spoken to your banker regarding financing?
I would also considering the following:
-Part time CFO
-Interim CFO
-See whether or not your current accounting firm can advise in these matters. Many firms offer a suite of services that may fulfill the needs you have without having to bring on an additional employee