Deciding to pay a current or future partner in equity is only the first step in a complex process for registered investment advisory firm owners.

But stock compensation can help firms attract and retain financial advisor talent, create a succession plan and boost their valuation, according to a webinar held last month by consulting firm Succession Resource Group and led by Julia Sexton, the firm’s director of strategic organizational planning, and Nicole Frey, its director of team solutions.

A successful equity pay plan requires choosing the right structure for the firm’s goals and the correct corporate entity for tax and compliance. Advisors should start by figuring out the end goal with the compensation, Sexton said. This helps clarify complex decisions, such as whether to pay with phantom equity (which provides appreciation or liquidation rights without technical ownership) and how possible voting rights may affect the firm’s governance, taxes or possible future M&A deals.