It’s not easy to attract marquee names to your fledgling startup company. But Margaret Siegel of Foley & Lardner says companies that eventually want rock star top talent must think through the corporate stock structure and plan for their recruitment from day one. But she also cautions that equity compensation—without context—for superstar players is a superbad idea. Instead, she says to take these steps:
Start Early
“While it can be set up later, sure, creating an option pool from the outset will help your attorneys better advise you on how to structure your company’s capitalization table,” explains Siegel, who notes that if you know granting equity is something that’s going to happen, set it up from the day you incorporate.
