Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Early-Stage Stock Still Attracts Top-Level Talent

Posted by: Rod Kurtz on June 15, 2006

Though stock-for-work is a less popular pay alternative these days, it still may be the only way that you can attract the level and quality of employees you need in your startup business. The Sarbanes-Oxley rules changed the way that deferred compensation can be used. This means that you need to talk with your attorney and know how you can trade stock for work. Among the issues that you likely will have to address are: correct corporate structure; employee qualification for deferred compensation; and development of the proper paperwork.

Be legally prepared to offer stock for compensation before you talk to potential employees about deferred compensation. When you are ready to make that offer, know what the parameters of the exchange are. Know if you will be granting stock for showing up to work, or only when specific outcomes are achieved in order for the stock to be granted.

Attorneys who work with early-stage companies understand the issues. If your attorney says that you can’t trade stock for work, find out why. Your attorney should know your venture well enough to guide you in the right direction.

Marilyn Holt, Certified Management Consultant
Holt Capital

Post a comment



Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.

To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.

BW Mall - Sponsored Links

Buy a link now!