How a Sporting Goods Business Hired a Lawyer to Draft an Equity Compensation Agreement in Texas

In 2022, a business in Texas sought assistance with drafting an equity compensation agreement to establish a vesting schedule for a key employee in sales. The client aimed to create a structure where the employee would develop ownership in the company over a five-year cliff period, allowing for a 5% ownership increase each year up to a maximum of 25%. This arrangement was intended to provide incentive while also ensuring that ownership was forfeited if the employee left before the vesting period ended. As a result, the client received four proposals from licensed attorneys, with flat fee bids ranging from $700 to $1,000, all submitted to meet the client's deadline of over one week.