Key Player Stock Plan
Reward your most trusted leaders who drive day-to-day operations and business growth.
Core Incentives
MARE Stock
Goals
Compliance
Culture
Efficiency
Engagement
Expansion
Growth
Legacy
Profitability
Retention
Stability
Company Size
51-100 Employees
Industries
Construction / Home Improvement
Commercial Services / Trades
Home Services / Trades
Professional Services
Revenue
$10M - $50M
Inspiration
Overview
- Mid sized home services businesses with 50-150 employees and $10M-25M in revenue, aiming for a profitability breakthrough to fund expansion or succession
- What it does: Rewards key employees or your right-hand leader with a share of the company’s value, tying their compensation to measurable business results. It motivates them to stay, perform, and think like an owner while contributing to the company’s long-term growth
- Why it works: By linking ownership to performance milestones and long-term vesting, the plan aligns incentives with the company’s success. It keeps top talent engaged, accountable, and invested in growth and day-to-day operations
Key Features
Core
Type
Full Value
Size
15
% FMV
shares of stock
and cap payment at $
Awards
OM
(6%) Operations Managers: Process & efficiency oversight
Conditions
Vesting
Annual
Schedule
4 Years
Acceleration
No items found.
Milestones
Milestone 1
Increase gross revenue by 20% each year
Milestone 2
Maintain 15% net profit margin each year to vest that year’s portion
Milestone 3
Payments
Triggers
At the end of the vesting schedule (while employed)
Upon termination (other than for cause)
Deferred until a sale (while employed)
Advanced Changes
Forms of Payments
Installments
How it works
- Set aside 15% of the company’s FMV to create a pool that will be shared among key employees. Allocate 6% to the operations manager.
- Vesting: Annual vesting for 4 years; each year vests when you increase gross revenue by 20% each year and maintain 15% net profit margin each year
- No accelerated vesting: Employees earn their stock only on the normal schedule with the influence of milestone completion
- Payout triggers: Payout happens when 1 of the following conditions are met; end of the vesting schedule, upon termination (other than for cause), or until a sale
- Installment schedule: 20% at trigger, then the rest paid monthly for 48 months
Who is this for?
- You want to reward and retain your key employees while driving company growth
- You have critical operations staff, like operations managers, who keep day-to-day jobs running smoothly and directly impact revenue and profit
- Owners who want to foster an “ownership” mindset by tying rewards to ambitious KPIs (company goals)
- You aim to tie rewards to measurable business performance, such as revenue growth and maintaining strong profit margins, while keeping the plan simple and scalable as your team grows
FAQs
How does this protect the company’s cash flow?
Payments are only triggered at major events and spread over time in installments, so the company can manage payouts without straining cash flow.
Why tie vesting to both revenue and profit?
Revenue growth alone can be risky if margins shrink. By requiring both top-line growth and a 15% profit margin, the plan ensures growth is healthy and sustainable.
Won't paying on termination trigger ERISA complications?
This plan is designed for key employees only, therefore, fitting nicely into the "top hat" exemption, not subject to ERISA scrutiny.