from Hacker News

This question is for bootstrapped companies that want to provide a long term incentive plan to its key employees.

Some potential plans I've seen include deferred compensation, phantom equity, or a simple profit pool. The first two can even be funded with life insurance or annuities, which can create tax free growth or tax deductions for the company.

Do you have any experience with these plans as an employee or employer of a bootstrapped company? What plan would you recommend? Are there any pitfalls to avoid here?