Restricted Stock Agreements

If the investor wants the founder to continue contributing to the business, they will ask for an investment schedule that will give the founder their share in the business over time. It`s a usual joke in the valley that founders make a 100% investment of their business, leave at 0% (with their share that is unwavering over time) and rejoice (because they have received their investment funds). Haha: -| In the United States, executive compensation practices were increasingly scrutinized by Congress as abuses by companies like Enron became public. The American Jobs Creation Act of 2004, P.L. 108-357, added Sec. 409A, which accelerates the income of employees participating in certain unqualified deferred compensation plans (including stock option plans). Later in 2004, the FASB issued Declaration No. 123 (R), share-based compensation, which requires treatment of stock option costs for fiscal years beginning in 2005. (Declaration no. .