{"id":333,"date":"2015-11-12T20:23:30","date_gmt":"2015-11-12T20:23:30","guid":{"rendered":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/?p=333"},"modified":"2020-07-31T13:29:15","modified_gmt":"2020-07-31T13:29:15","slug":"owning-the-brewery-a-series-on-equity-compensation-for-brewers","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/","title":{"rendered":"Owning the Brewery: A Series on Equity Compensation for Brewers"},"content":{"rendered":"

What’s to come in this series?<\/p>\n

Tech start-ups routinely reward employees with a chance to own part of the business. They do this with stock options, restricted stock grants, LLC capital and profits interests, real and phantom awards.<\/p>\n

Over the next several months, I\u2019ll be explaining how all these things work. Among the points that I will write about are:<\/p>\n

What\u2019s the difference among ownership interests in corporations, limited liability companies and partnerships?<\/p>\n

Will the brewery\u2019s current owners lose control if they grant ownership to employees?<\/p>\n

Stock options, restricted stock, capital interests, profits interests, phantom stock, stock bonuses\u2014all have certain important characteristics, here are some of the specific things we will explain:<\/p>\n

    \n
  1. Do they represent actual ownership, specifically, do they have rights to vote or control what we do?<\/li>\n
  2. Do they also have a direct financial stake in our success?<\/li>\n
  3. Are there tax consequences for the brewery and the employee who receives an ownership stake?<\/li>\n
  4. Do we have to give shares to everyone? Can we require that the employee stays with us for a certain period of time before they get the shares?<\/li>\n
  5. What happens if an employee gets some stock and then quits? What if she goes to work for a competitor?<\/li>\n<\/ol>\n

    While this is complicated stuff, it\u2019s not as complicated as brewing a great beer. If it\u2019s done right, studies have shown that owner\/employees perform better and employee-owned businesses are more successful in the long run.<\/p>\n

    I hope and think that you will find it interesting and understandable.<\/p>\n","protected":false},"excerpt":{"rendered":"

    What’s to come in this series? Tech start-ups routinely reward employees with a chance to own part of the business. They do this with stock options, restricted stock grants, LLC capital and profits interests, real and phantom awards.<\/p>\n","protected":false},"author":37,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-333","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nOwning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Owning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch\" \/>\n<meta property=\"og:description\" content=\"What’s to come in this series? Tech start-ups routinely reward employees with a chance to own part of the business. They do this with stock options, restricted stock grants, LLC capital and profits interests, real and phantom awards.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/\" \/>\n<meta property=\"og:site_name\" content=\"At the Bar With Bowditch\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-12T20:23:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-31T13:29:15+00:00\" \/>\n<meta name=\"author\" content=\"Terrence J. Briggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Terrence J. Briggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/\"},\"author\":{\"name\":\"Terrence J. Briggs\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/#\\\/schema\\\/person\\\/3d3317e24800975f12cb92326444474d\"},\"headline\":\"Owning the Brewery: A Series on Equity Compensation for Brewers\",\"datePublished\":\"2015-11-12T20:23:30+00:00\",\"dateModified\":\"2020-07-31T13:29:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/\"},\"wordCount\":268,\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/\",\"url\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/\",\"name\":\"Owning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/#website\"},\"datePublished\":\"2015-11-12T20:23:30+00:00\",\"dateModified\":\"2020-07-31T13:29:15+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/#\\\/schema\\\/person\\\/3d3317e24800975f12cb92326444474d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/2015\\\/11\\\/12\\\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Owning the Brewery: A Series on Equity Compensation for Brewers\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/#website\",\"url\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/\",\"name\":\"At the Bar With Bowditch\",\"description\":\"A Legal Blog for the Craft Brewing Community\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bowditch.com\\\/craftbrewerylegalblog\\\/#\\\/schema\\\/person\\\/3d3317e24800975f12cb92326444474d\",\"name\":\"Terrence J. Briggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g\",\"caption\":\"Terrence J. Briggs\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Owning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/","og_locale":"en_US","og_type":"article","og_title":"Owning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch","og_description":"What’s to come in this series? Tech start-ups routinely reward employees with a chance to own part of the business. They do this with stock options, restricted stock grants, LLC capital and profits interests, real and phantom awards.","og_url":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/","og_site_name":"At the Bar With Bowditch","article_published_time":"2015-11-12T20:23:30+00:00","article_modified_time":"2020-07-31T13:29:15+00:00","author":"Terrence J. Briggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Terrence J. Briggs","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/#article","isPartOf":{"@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/"},"author":{"name":"Terrence J. Briggs","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/#\/schema\/person\/3d3317e24800975f12cb92326444474d"},"headline":"Owning the Brewery: A Series on Equity Compensation for Brewers","datePublished":"2015-11-12T20:23:30+00:00","dateModified":"2020-07-31T13:29:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/"},"wordCount":268,"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/","url":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/","name":"Owning the Brewery: A Series on Equity Compensation for Brewers - At the Bar With Bowditch","isPartOf":{"@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/#website"},"datePublished":"2015-11-12T20:23:30+00:00","dateModified":"2020-07-31T13:29:15+00:00","author":{"@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/#\/schema\/person\/3d3317e24800975f12cb92326444474d"},"breadcrumb":{"@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2015\/11\/12\/owning-the-brewery-a-series-on-equity-compensation-for-brewers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/"},{"@type":"ListItem","position":2,"name":"Owning the Brewery: A Series on Equity Compensation for Brewers"}]},{"@type":"WebSite","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/#website","url":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/","name":"At the Bar With Bowditch","description":"A Legal Blog for the Craft Brewing Community","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/#\/schema\/person\/3d3317e24800975f12cb92326444474d","name":"Terrence J. Briggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d8776305d068456d993a770104bc1dcf0fb6c113c9b9d6034bd0a31e8780350d?s=96&d=mm&r=g","caption":"Terrence J. Briggs"}}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pd7Mns-5n","_links":{"self":[{"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/posts\/333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/comments?post=333"}],"version-history":[{"count":0,"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/posts\/333\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/media?parent=333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/categories?post=333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/wp-json\/wp\/v2\/tags?post=333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}