Alt Stock Plan for Profitable Construction Teams
Keep loyal key talent and reward growth: an appreciation-only plan that vests each year you hold at least 8% net profit
Core Incentives
MARE Stock
Goals
Compliance
Culture
Efficiency
Engagement
Expansion
Growth
Legacy
Profitability
Retention
Stability
Company Size
51-100 Employees
Industries
Construction / Home Improvement
Home Services / Trades
Manufacturing & Production
Revenue
$10M - $50M
Inspiration
Overview
- Who it’s for: Construction companies between 50-100 employees and $10M - $50M in revenue that want to protect 8%+ net profit and keep key leaders long-term.
- What it does: Grants 100 share units (~10% of FMV) as appreciation-only—simple, owner-friendly upside without near-term cash impact. Vests annually over 4 years when the company holds 8% net.
- Why it works: You’re not planning to sell soon, but you want options. The plan preserves flexibility, rewards tenure and performance, and includes a sale payout or a 7-year backstop so employees see real value.
Key Features
Core
Type
Appreciation Only
Size
100
% FMV
shares of stock
and cap payment at $
Awards
GM
(300 units) General Managers: Day-to-day ops leadership
PM
(200 units) Project Managers: Oversees projects, bids and delivery
FI
(150 units) Finance leader and estimators
FM
(200 units) Foreman: Leading crews on the field
SI
(150 units) Superintendents: Project oversight and quality assurance
Conditions
Vesting
Annual
Schedule
4 Years
Acceleration
Retirement
Post sale and employed
Milestones
Milestone 1
Maintain 8% net profit each year to vest that year’s portion.
Milestone 2
Milestone 3
Payments
Triggers
On a specific date (while employed)
Deferred until a sale (even if terminated)
Advanced Changes
Forms of Payments
Installments
How it works
- Create the pool: 100 units total (~10% of FMV) as Shares; split across ~12 key employees.
- Vesting: Annual vesting for 4 years; each year vests when you maintain 8% net profit.
- Acceleration: On sale (while employed) and at retirement (10+ yrs tenure and age >60)
- Payout triggers: The earlier of a sale (even if terminated) or 7 years from grant.
- Installment schedule: Four installments—25% at trigger, then 25% at years 1, 2, and 3.
Who is this for?
- You aim to stay independent and live through the business but want an option to sell if a great offer appears.
- You have ~12 key contributors (ops, field, finance & project management) who drive efficiency, cash flow and growth.
- You may acquire smaller firms to seed growth and want a plan that scales with headcount.
FAQs
Why use appreciation-only instead of full-value?
It keeps things light on cash and simple for owners. Employees share in upside your team creates without adding near-term liabilities to the business.
How do the two payout triggers work together?
The plan pays at the earlier of a sale or 7 years from grant. That gives clarity even if there’s no sale soon—and a clean payout if a great offer appears.
We plan to buy smaller companies. Does this still fit?
Yes. Keep the 8% net milestone through integrations. You can add new award units for incoming leaders to keep incentives aligned across the combined business.