Recently, Petra Coach presented a webinar, Win the War for Talent Using Performance Equity with Byron McFarland.

You can find the full recording below.

Learn more about Byron and his work as an Exit and Equity Compensation Strategist at

Top Takeaways

3 Fronts Attacking Talent in Small Businesses

  1. Self-Employment
    • How We Try to Compete: Benefits
  2. Free Market
    • How We Try to Compete: Culture
  3. Expectations
    • How We Try to Compete: Bonuses

Our Solution – Build a “moat” around your talent pool by sharing business value

Ways We Can Share Equity

  1. Full Value
    • Restricted Stock – capital asset
    • Phantom Stock – compensation
  2. Growth in Value
    • Options – ways for employees to buy into the company contractually
    • Stock Appreciation Right (SAR)

Relationship Paradigm (Commitment v. Expectations)

  1. Date – Bonus
  2. Engaged – Phantom Stock, SAR
  3. Married – Restricted Stock or similar options

Motivational Force Formula

  1. Belief in Team and Big Plan
    1. Past Performance
    2. Resources
    3. Capabilities
  2. Trust Scorecard & Scorekeeper
    1. In Writing
    2. In Control
    3. Measurable
  3. Perceive Value of Award
    1. Life Stage
    2. Financial & Family Situation

Triangle of Residents

  1. Award – do I feel like the award is meaningful to me?
  2. Vesting – how long is the award pushed out?
  3. Payout – when do I get paid?

Best Practices


  • 15% of Salary of Participants
  • 60% of Participants Salary that is Subject to Forfeiture


  • Fix Future (5-7 years)
  • Change in Control
  • Death/Disabled

WiiFY (What’s in it For You)


Like what you see? Register for our upcoming workshops & webinars today!