Provided by: Heather Graham, CPA, CVA
Do you have busy clients who are the sole shareholders of their businesses? Sometimes business owners limit their organization’s growth by limiting the size of the “talent pool.” Shareholders who begin to realize this might need to look no further than the ranks of their employees. Properly motivated employees can bring new energy and ideas to the table. Issuing voting and non-voting shares of stock to key employees can be a good way to share the rewards of success. however, proper analysis, planning and valuation of the stock are necessary before implementing such a plan.
