6  ILLINOIS BUSINESS LEADER
6  ILLINOIS BUSINESS LEADER
FOCUS
Today’s employment environment 
requires companies large and small 
to be deliberate when designing their 
compensation strategy. Our panelists 
presented a high-level overview of 
the options available to executive 
teams when designing compensation 
packages that align with key business 
goals and objectives.
Top takeaways from this presentation 
include:
A critical first step is to determine 
your company’s compensation 
philosophy. Clarity around your 
company’s goals—e.g., do you prefer 
to attract top talent or develop 
talent?—and values play a critical 
role in determining the appropri­
ate compensation strategy. When 
implemented thoughtfully, compen­
sation tools can help align employee 
interests with company objectives, 
increase engagement, and improve 
retention.
Broadly speaking, there are two 
types of “sweat equity” compensa­
tion. Traditional equity plans, such 
as stock options, and phantom equity 
plans, such as stock appreciation 
rights, are tools that help align your 
employees’ financial interests with 
the company’s and increase employee 
retention.
Not all “sweat equity” benefit plans 
are appropriate for all organiza­
tions. Top considerations to keep 
in mind when determining what is 
the best option for your company 
include company structure and stage, 
business objectives, workforce con­
siderations, financial administrative 
impact, compliance considerations, 
and plan design elements.
Non-traditional benefits speak your 
corporate values. These benefits 
tend to focus on work-life balance 
incentives, such as flexible work ar­
rangements, unlimited or enhanced 
PTO policies, sabbatical programs, 
student loan repayment assistances, 
and financial education resources. 
Depending on the design, they can 
be tax advantaged.
	
For a full, in-depth discussion 
on the various compensation options 
available to employers, see the link 
below.
Employment Law Update
Key Takeaways – Beyond Sweat Equity: 
Modern Compensation Strategies for 
Enhanced Engagement & Retention
By Rebecca Bush
Partner, Amundsen Davis
Kelly Haab-Tallitsch
Partner, Amundsen Davis
WATCH FULL WEBCAST HERE

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