Download these proven employee stock options plan documents — executive & employee incentive compensation for continued service & business growth
Includes all the sample document templates for both qualified or non-qualified stock option plans…
Use stock options to reward key employees for building your business
One of the easiest, best and relatively economical incentives to motivate valuable executives and employees is to give them ownership in your company through options to purchase shares of stock. Stock options are great for rewarding employees, contractors and other contributors to your business for their continued support, contributions and long-term commitment. They will feel the ownership, and enjoy the reward of staying the course and helping you to build your business.
Why stock options and not just shares?
If you gave your employees the actual shares now, they would be immediately liable for income tax based upon the value of the shares today. With stock options, you are promising them that they can buy shares in the future, based upon your share price today… since you haven’t actually paid them anything and therefore there would be no tax liability. So, stock options are the way to go.
Employee Stock Options Vesting
Your executives and employees can purchase only the stock option shares they earn: Vesting gives executives and employees the right to purchase an increasing percentage of their shares as time goes by… For example, using a 5-year stock options vesting schedule, an employee would be eligible to purchase only 20% of their stock options at the end of the first year. This way, if an employee or executive quits (or you must fire them), they can purchase only a prorated fraction of their original allotted number of stock options based upon the amount of time they actually worked for you. Forfeited shares go back into the option pool.
Here’s everything you get with Stock Options Builder:
Stock Option Builder is a software system that manages a collection of sample employee stock options template documents, professionally formatted in Word, that you can easily edit or reformat to your liking. Stock Option Builder also includes a handy spreadsheet template in Excel for managing and tracking your executive and employee stock ownership and options — just fill in the variables and print.
Complete sets of both Incentive/Qualified Options Plan AND Non-Qualified Options Plan documents are included. (Instructions explain the differences and provide step x step direction.)
Cover Letter to Employees
Dear employee… Here is the paperwork that says, “You get a piece of the action…” Read these documents, sign them, and file everything for the future — you will share in the wealth as the value of the company increases. It’s actually a formal letter explaining the contents of the packet (most of this product) that you are giving them.
Stock Option Agreement
This makes the incentive real in the minds of your employees and partners. All the benefits of owning shares (except voting rights) without the tax liability — pay for the shares and the taxes when the value has been built. Usually when your company is acquired or goes public, a simultaneous transaction is created whereby you and your employees purchase the options and immediately receive the proceeds.
Stock Option Plan
Describes all of the legal details of a properly executed incentive stock option plan. What you and they can and cannot do, vesting, what to expect, dates, contingencies, disclaimers, etc.
Summary of Terms of the Stock Option Plan
This handy information sheet further explains many of the details involved in an Incentive Stock Option Plan.
Common Stock Purchase Agreement
When it’s time to actually purchase the stock, you have the paperwork to complete the process.
Stock Options Planning & Tracking Worksheet
Use this Excel spreadsheet to list all of your shareholders as well as option holders. Keep track of when you gave the options, the option price, vesting—automatically calculates the balance of shares available for other employees and contributors.
Track all stock of your shareholders as well as executive & employee stock options with this “checkbook-like” spreadsheet
Track the details of your executive & employee stock options allocations — automatically calculates balances.
Board of Directors’ Approval
The formalities are serious. This makes it official. We make sure that you do it right. Fill in who gets how much stock, have your Board of Directors sign it, and you have officially approved granting stock options to your people. Use this handy form over and over again whenever you want to issue more options.
Create your own stock certificates — buy attractive preprinted forms from PaperDirect
Unique JIAN system manages files, just edit using Word & Excel
There are no new programs to learn — Stock Options Builder is easy to use and works with your familiar Microsoft® Office software.
- Just scroll through each section and edit using your familiar Word or Excel applications.
- Experts’ comments throughout each section, in green, explain issues and make suggestions to help you do it right.
- You can add, edit and customize any document the way you like.
- Drag and drop sections to change the order.
- Collaborate over a network, server or the Internet (Each user requires their own licensed copy.)
- Check the boxes for each section you want to include.
- You can even add your own external documents, new sections and print to PDF.
The JIAN MIDAS document assembly software enables you to easily add your own documents into the system.
Everything you need to create an employee incentive stock options plan
You can put your complete executive and employee incentive stock options compensation plan in place yourself for a fraction (a very small fraction) of the cost of having it written from scratch. Then have your attorney (please see a specialist) or our affiliated law firm review it for completeness. Stock Options compensation for your executives and employees—a piece of the action… “golden handcuffs”… managed your way.
Supported by the Burk & Reedy Law Firm
With a proven stock options plan in place, you can motivate your executives and employees to increase profits, improve efficiency, and enable you to grow. Download Stock Options Builder and get started now.