Entrepreneurs are still technically employees of the companies they create. While it may seem like a legal trick to speak of a company founder's compensation from that company, later investors in the firm, for one, will be interested in the founder's contractual arrangements with the company. Restricted stock is one common form of compensation for founders; this article explains what restricted stock is, how it is often used in founders' compensation packages, and why restricted stock is such a valuable tool for incentivizing a company's founder.
- Summary by FizzLaw Team
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Startup Law 101 Series - What is restricted stock and how is it used in my startup?