Key Employee Compensation?

I have a very valuable key employee who has been with me for over 10 years. Each year he has been with me, I have given him a raise. Now, I prefer to reward him some other way other than money. I own my Sub S corporation 100%. Can someone give guidance as to how to do this the right way? By the way, I have a son who I am training to take over for me someday.

Answer

Contributor
Hi Robert;

We created a performance appraisal process for small to medium companies. Our system allows the staff member to create their own measurable goals with you concurrence. It is a win/win for each of you. 'as for as offering him a reward for a job well done, through out the year, a pat on the back goes a long way, in addition, small gifts like a free dinner and a nice restaurant, movie or show tickets, etc. The key is to create measurable goals that the employee knows that it is up to him as to how well he will do. . Our process requires you to review the goals every quarter to see if he is on track. I hope this helps.
1 Additional Answer
Mark Herbert (Principal, New Paradigms LLC)
Robert:
There are a number of things you can do around long term incentives ranging from non qualified defered compensation arrangements to actually giving this person an opportunity to be a minority shareholder. It sounds like it is your intentto have your son take over the business, but that wouldn't prevent you from releasing some of the stock to key staff.
I have designed a number of longer term plans that involve performance over multiple year periods to 'vest'.
I try to get away from 'annuity' style compensation plans for key people. They are too short term...
Q&A Related to "Key Employee Compensation?"
1. Take employees on company-sponsored activities such as a pizza party, a day at a local theme park or even whitewater rafting. Your employees will enjoy the opportunity to get together
http://www.ehow.com/how_2199743_compensate-employe...
You must be signed in to read this answer. Sign In with FacebookConnected to FacebookSign In with GoogleConnected to Google Connecting helps us surface content that is relevant to
http://www.quora.com/Google/How-does-Google-compen...
Usually, compensation is composed of the base wage or salary, any incentives or bonuses, and other benefits.
http://wiki.answers.com/Q/What_comprises_employee_...
See another question from a reader with my response below. Do you agree? Disagree? Have a thought to add? Please respond in "comments. Question: "We're trying to formulate
http://humanresources.about.com/b/2008/07/29/how-t...
Explore this Topic
Be stingy with equity and make the employees earn it. Have revenue or other milestones as part of the compensation package. Above all, be clear and in writing ...
A key employee is one who has major ownership and/or a decision-making role since they own more than 5% of the business. These employees are highly compensated ...
Using rewards to motivate employees can be an effective way to encourage performance. There are many different options to use for motivation, and the key is finding ...
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014 Ask.com