Profits Interests Done Right: A Decision-Maker’s Guide to Effective Profits Interest Programs

For private equity-backed firms and other partnerships, profits interests are among the most tax-efficient tools for aligning management teams with long-term value creation. But the decisions made at program inception, and the way the program is communicated and sustained after launch, determine whether that alignment holds or erodes over time.

This webcast is designed for the executives in the room when those decisions get made. That includes CEOs, managing partners, CFOs, general counsel, heads of HR and compensation, and private equity sponsors. All need a clear-eyed view of the tradeoffs, risks, and operational demands of a well-run profits interest program.

Highlights include:

• Why profits interests are the instrument of choice, and how they compare to other ownership and award types in terms of tax treatment, complexity, and recipient economics
• The program features and design decisions that matter most: eligibility, grant sizing, award frequency, vesting structures, thresholds and waterfalls, and forfeiture provisions
• Potential tax advantages for participants when plans are properly structured
• Common pitfalls that can undermine profits interest programs post-launch

Join Dominic Cowler, Josh Schaeffer, and Therese Sebastian for a practical discussion on developing a well-thought-out profits interest program.

CPE Credits: 1.0 (available to live webcast attendees)
Field of Study: Specialized Knowledge
Program Level: Overview
Advance Preparation: none required
Prerequisites: none required
Additional CPE details