How Sharing Equity Can Build a More Entrepreneurial Business

Businesses that share equity with their valued employees can better motivate and retain top talent while reaping the benefits of an entrepreneurial culture.

Three office workers smile and laugh during a meeting in a conference room.
(Image credit: Getty Images)

There are more than 30 million small businesses in the U.S., and for many Americans, the equity they’ve built in these enterprises represents an outsized percentage of their overall net worth. However, to fully capitalize on the value of the business requires careful consideration, an eye toward the future and a willingness to challenge the status quo.

One of the critical, but often overlooked, ways to position a company for sustained momentum is to rethink how equity is shared. Firms that take a forward-looking approach to their equity strategy can better motivate and retain their top talent, while reaping the benefits of an entrepreneurial culture that serves as a catalyst for growth by rewarding value creation. However, the process is not without its challenges.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Heather Robertson Fortner
CEO, Chair of the Board, SignatureFD

Heather Robertson Fortner is CEO and Chair of the Board of SignatureFD, an integrated wealth management firm with offices in Atlanta, Georgia and Charlotte, North Carolina. During her 20-year tenure at SignatureFD, Heather has created and executed strategies that have grown the firm’s AUM from $250 million to over $6 billion. SignatureFD’s unique approach to wealth management – called Net WorthwhileTM – is predicated on her philosophy that every person has a purpose in life, and wealth should be a vehicle to achieve one’s goals and live in alignment with one’s values.