Stock Bonus Agreements
There are many ways to incentivize your business’ employees, one of which is by granting them an ownership interest in the company. Small businesses that want to grant an employee an ownership incentive will issue a stock bonus to the employee. A stock bonus agreement is simply an agreement whereby the company agrees to issue a certain number of shares of stock or a certain value in stock to an employee in exchange for services rendered to the organization. Often, the organization will desire for the employee to agree to sell the stock back for an agreed price or its fair market value upon termination of the relationship between the company and the employee, that way the company does not have disgruntled former employees as shareholders.