equity-distribution-plan

Vocabulary Word

Definition

An 'equity distribution plan' is a structured way to decide who gets what portion of a company. It's like dividing a cake at a party, where the size of each slice depends on each person's contribution to the company.

Examples in Different Contexts

In employee incentives, an 'equity distribution plan' is a mechanism for offering stock options to employees as part of their compensation. An HR director might remark, 'Our equity distribution plan is competitive, ensuring we retain top talent by giving them a share in the company's success.'

Practice Scenarios

Startup

Scenario:

I've noticed that successful startups lure talented professionals with more than just a high salary. We need to have something more appealing in our offer.

Response:

Yes, let's draw up an attractive equity distribution plan. It will make our startup more appealing to talented individuals.

Scenario:

We've been losing staff to our competitors lately. We need a strategy to keep our talented employees motivated and committed to our company.

Response:

We could consider developing a comprehensive equity distribution plan. It may help in retaining our top talents.