[Stock compensation methods] "Stock options vs. restricted stock with transfer limitations" has pros and cons!

Law firm Veat’s partner attorney, An Il-won, has a deep understanding of corporate mechanisms as an ex-developer from a large corporation, and has accumulated abundant practical experience through performing various corporate advisory/consulting attorney duties. He actively participates as a legal mentor attorney for ICT startups of the Ministry of Science and ICT, and a lecturer at the Korea Bar Association’s ‘2020 Venture Startup Investment Academy’ attorney training program, combining theory and practice to provide in-depth legal advice on ‘startups’ and ‘corporations’.

• Methods of providing stock compensation to employees
  Providing stock compensation is one of the long-standing traditions of startups.
  Although there may not be much cash available for immediate use, the growth potential is high, so stock compensation can be more effective,
  RSU is used more frequently in employee compensation recently due to its freedom from legal restrictions compared to stock options.
  However, you must keep in mind that it is essentially using the company’s own shares.

For more detailed information, you can check out Outstanding here: ▶Stock Options vs RSUs, They have advantages and disadvantages - Easy and Fun IT News, Outstanding! (outstanding.kr)

Furthermore, attorney An Il-won, certified as an IT specialist by the Korea Bar Association, has been appointed as a member of the Education Curriculum Innovation Committee of the Yonsei University Artificial Intelligence Convergence College recently, and is expanding his capabilities in the field of artificial intelligence. Based on his long-accumulated corporate advisory experience and technical expertise in the IT/software field, he is specialized in advisory and M&A/investment areas related to 4th Industrial Foundation Services such as artificial intelligence, IT/software, and virtual assets.

If you need legal advice regarding incentives, stock compensation, compensation design, stock options, RSUs (Restricted Stock Units, Restricted Stock with Transfer Restrictions) during the operation of a company, please feel free to contact Law Firm Veat anytime.

Thank you.