by Anonymous on August 6th, 2009

Anonymous

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My business partner and I want to reward an employee with a stake in the company, but we don't want to give any controlling interest in the company. Is there a difference between having shares/stock but no control but allows him to profit if company sold?

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Answers. 1 helpful answer below.

  • by yahoot on September 11th, 2009

    yahoot

    Sounds like you want to give the person stock options.

    Options give the person the right to acquire stock at some point in the future, but they give no current voting rights. If the company is sold, the options are normally bought out as part of the deal. If the company goes public, options can become very lucrative.

    If this is close to what you want, talk to a lawyer. Stocks and options are governed by some fairly complex laws.

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