Attracting and retaining talented management and employees is another way to help you increase your revenues. You can use stock and stock option plans to attract and retain talented management employees.
If you go public in theU.S.capital markets, your stock can be issued as a performance based reward or incentive. This reward is more desirable if the stock has a public market. This market can result in liquidity and reward for your company’s management employees. A stock plan demonstrates corporate good will allows management and employees to become partial owners in the company where they work.
Rewarding your management and employees with stock after you go public in theU.S.capital markets can lead to increased productivity, morale and loyalty. This type of compensation is a way of connecting an employee’s financial future to the company’s success.
However, as many China Reverse Merger companies have discovered, going public with a reverse merger with a public shell may in fact end up destroying your company’s ability to reward and motivate management and employees. Why? You don’t go through the rigorous SEC review process, which can lead to substantial problems down the road.
Going Public in a Go Public Direct transaction puts your company on firm ground with the SEC before you enter into the public arena. All of your future required public filings like 10-K’s and 10-Q’s are based upon disclosure that has been thoroughly vetted by the SEC in the review process.