Oil & Gas Employee Buy-In

Structuring and implementing an employee buy-in plan needs to be carefully approached so as to realize one's intended results and avoid unintended consequences.

A common practice in the oil and gas sector, amongst both primary petroleum companies and service companies, is to provide employees with the ability to buy into the company. This corporate practice is seen as means to provide ownership and thus a veritable stake in the company, which is viewed as a much sought after incentive, which also engenders greater dedication and commitment from these employee stakeholders.

The challenge, however, is in making such an employee buy-in operate within specified parameters, such that it is capable of realizing the principal stakeholder's intended objectives, while avoiding (or minimizing) the prospect of unintended consequences. As such, a primary driver needs to be the legal documentation that facilitates such an employee buy-in, as its goal is to limit the prospect of perversion and manipulation of the employee buy-in plan, by imposing appropriate legal controls and restrictions.

At Neufeld Legal P.C., we understand the significance of having a solid employee buy-in plan, together with the dangers arising from an absence of, or otherwise inefficient, legal plan. For more information with respect to our law firm's ability to structure and implement an effective employee buy-in plan or to schedule an appointment, contact our lead lawyer Christopher Neufeld at Christopher@OilGasLawyer.ca or 403-400-4092.