Using Profit Interest Units as an annual bonus plan for a CEO?

by a searcher from Brigham Young University

May 12,2023

Does anyone have any experience with using profit interest units as an annual bonus plan for a CEO we're putting in place at a LLC?  There's a lot written about how PIUs are used during exits, but what about setting EBITDA thresholds for the PIUs and then paying out dividends based on them on an annual basis?  Any thoughts or insights would be greatly appreciated!

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professional from Walsh College of Accountancy and Business Administration

Profit units are used in a variety of ways beyond just an exit. It all comes down to what you're trying to accomplish, the timing of when they share, when you want the units to vest, and the hurdles you will include in the targeted capital account waterfall. email me at --@----.com and we can set up a call to discuss.

05/14/2023 | like reply | 0 likes

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