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OklahomaTuba
7/14/2006, 01:45 PM
Anyone deal with equity compensation in a private company setting or have opinions on this? Anyone have experience with restricted stock?

TIA.
jkm, the stolen pifwafwi
7/14/2006, 01:47 PM
yep
mdklatt
7/14/2006, 01:47 PM
Dean does not approve.
1stTimeCaller
7/14/2006, 01:48 PM
yep.
Hamhock
7/14/2006, 01:49 PM
is it an ESOP or some sort of phantom?

there was a lot of this going on back when the techs were flying high and private companies were losing personnel to tech stocks offering thousands of shares in options.

i don't see it alot now, unless it is an ESOP or other succession planning technique.
OklahomaTuba
7/14/2006, 01:50 PM
yep

Hows it working out for you?
OklahomaTuba
7/14/2006, 01:52 PM
is it an ESOP or some sort of phantom?

there was a lot of this going on back when the techs were flying high and private companies were losing personnel to tech stocks offering thousands of shares in options.

i don't see it alot now, unless it is an ESOP or other succession planning technique.

Not an ESOP. Highly capitalized industrial company with owner set to retire, looking to keep the place from falling apart if the kiddos get their hands on it.

No offical offer has been made yet, just wondering what people think about restricted, etc.
1stTimeCaller
7/14/2006, 01:54 PM
http://management.about.com/cs/adminaccounting/a/restrictedstock.htm
OklahomaTuba
7/14/2006, 02:01 PM
http://management.about.com/cs/adminaccounting/a/restrictedstock.htm

Thanks!
1stTimeCaller
7/14/2006, 02:02 PM
I guess I was involved in an ESOP dealio and not options or restricted stock.

They seem to be a great thing. I hope you get rich!!
OklahomaTuba
7/14/2006, 02:04 PM
I guess I was involved in an ESOP dealio and not options or restricted stock.

They seem to be a great thing. I hope you get rich!!

Its my wifes actually.

She is the financial controller, and we are looking strategies to buy the company. The owner is open to suggestions, he just wants a few things to happen.

I think an ESOP is out of the question, as you have to offer that to everyone, instead of a "select few".
Hamhock
7/14/2006, 02:06 PM
Not an ESOP. Highly capitalized industrial company with owner set to retire, looking to keep the place from falling apart if the kiddos get their hands on it.

No offical offer has been made yet, just wondering what people think about restricted, etc.


if it's not an ESOP, then the question becomes, How do you value and sell the stock?

if you own 5% of a great company, you still need to find someone who will buy the stock from you.
Hamhock
7/14/2006, 02:07 PM
Its my wifes actually.

She is the financial controller, and we are looking strategies to buy the company. The owner is open to suggestions, he just wants a few things to happen.

I think an ESOP is out of the question, as you have to offer that to everyone, instead of a "select few".


doesn't sound like you're talking about equtity compensation.

sounds like you are talking about a stock purchase/sale agreement.
OklahomaTuba
7/14/2006, 02:09 PM
doesn't sound like you're talking about equtity compensation.

sounds like you are talking about a stock purchase/sale agreement.

Yes, I think so, now that I am reading some more about it.

Just trying to do some research on it before I dump some cash talking to a lawyer dude.
jkm, the stolen pifwafwi
7/14/2006, 02:14 PM
basically, they pay out dividends on the stock every year bye determining the company's valuation and paying you the difference of the last two valuations. if the company is ever sold then you can sell it at the difference between your strike price and the sell price.
1stTimeCaller
7/14/2006, 02:14 PM
The employee owned construction company that I worked for only offered stock to salaried employees. Peons like me were offered a much smaller share than the longtime folks were.
jkm, the stolen pifwafwi
7/14/2006, 02:19 PM
my current company sort of gives us stock. i say sort of since their SOX issues keep them from being publicly traded at the moment. i've seen many a techy go from millions to hundreds because they hold onto them too long.
OklahomaTuba
7/14/2006, 03:43 PM
my current company sort of gives us stock. i say sort of since their SOX issues keep them from being publicly traded at the moment. i've seen many a techy go from millions to hundreds because they hold onto them too long.

I've heard about this before as well.

The one thing this company has going for it is the assets such as real estate, equipment, etc. And it helps its making some good margins consistently for 20+ years.
jkm, the stolen pifwafwi
7/14/2006, 04:47 PM
I've heard about this before as well.

The one thing this company has going for it is the assets such as real estate, equipment, etc. And it helps its making some good margins consistently for 20+ years.

sounds like mci worldcom
Dio
7/14/2006, 05:15 PM
Put it all on Enron- you can't miss.

YWIA
OklahomaTuba
7/15/2006, 01:24 AM
sounds like mci worldcom
Ha! Except they don't have a gym teacher running the place.
Chuck Bao
7/15/2006, 09:08 AM
i've seen many a techy go from millions to hundreds because they hold onto them too long.

I know this stupid guy who took out a loan to subscribe to ESOP.

Cries