How an Event Services Business Hired a Lawyer to Draft an Equity Compensation Agreement in Tennessee

In 2022, a business in Tennessee sought assistance with drafting an equity compensation agreement as they prepared to onboard a new Chief Operating Officer. The client aimed to enhance their existing contractor agreement, which only specified a monthly salary and a non-disclosure agreement, by incorporating clauses that would provide incentives and equity compensation linked to performance benchmarks. This included setting a base salary, offering commission on sales, and outlining a vesting schedule for equity opportunities dependent on the contractor’s contributions and the company’s financial targets. As a result, the client received four proposals from licensed attorneys, with flat fee bids ranging from $750 to $1,500, all submitted to meet the client's deadline of over a week.