This is a common issue in businesses and these two methods are effective:
These shares will carry restrictions such as they can’t be sold for 5 years. The benefit is that they can be substantially discounted when calculating their value.
These are a separate class of shares and the shareholders participate in the value of the company over a set hurdle.
We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: firstname.lastname@example.org