Doing the same thing generally produces the same result, and as the new year arrives, many business owners are considering new steps to help their companies achieve greater success in the year ahead. Leveling up requires change, and this post reviews three resolutions majority owners can implement to obtain better outcomes during 2026 for their companies and also for themselves. Specifically, these resolutions should incentivize employee productivity, improve the company’s governance structure and help the majority owner become a more effective leader.
Resolution 1: Provide Employees With Phantom Equity or Stock Appreciation Rights
Providing employees with performance incentives is a common way for companies to boost productivity. Bonus structures are typically geared toward individual performance and may not correlate directly correlate with improved results for the company as a whole. However, other incentive tools are available that more closely align employee rewards with the company’s broader productivity and performance goals.
One such option is issuing phantom equity or stock appreciation rights. These incentives do not involve an actual award of stock and do not provide employees with true equity in the business. Instead, employees receive contractual rights that entitle them to additional payments based on the company’s performance. Typically, these agreements provide for additional compensation if the company achieves specific revenue or growth targets. When the company succeeds under these agreements, employees share in that success.
Providing phantom equity aligns employee performance more closely with the company’s goals while avoiding complications associated with granting actual equity. As discussed in other posts, employees who hold equity in the business may have the right to access company books and records, assert fiduciary duty claims against leadership, and require the company to buy out their interests upon departure.
Resolution 2: Refresh The Company’s Board or Managers
Private companies often do not operate with the same level of formality as large corporations, which can be beneficial. Less formality allows them to be more flexible, make quicker decisions, and benefit from closer communication among leadership. However, it can also result in little to no turnover at the board or management level, particularly when no defined terms of service exist for those serving in these positions.
When the same board members or managers remain in place for extended periods, stagnation can occur. A lack of fresh perspectives may lead to diminished energy, lack of vision and creativity for the business. To address this, the majority owner should conduct an objective assessment of the current board or management team to identify areas where additional expertise or stronger input is needed.
For example, the owner should evaluate whether the company’s current leadership adequately supports the business in the following key areas: (i) finance and accounting, (ii) technical expertise, (iii) sales and marketing, (iv) strategic planning and (v) legal matters. If gap exists, the owner may consider transitioning one or more current leaders or expanding the board or management team to bring in new voices.
Strengthening the leadership group can have a significant positive impact. Beyond introducing new ideas or experience, fresh perspectives reduce the likelihood that the company’s existing practices will simply be rubber-stamped. New board members or managers can inject energy and challenge stale assumptions in ways that existing leadership may not.
Resolution 3: Invest in the Owner’s Own Development as a Leader
In private companies, majority owners often wear many hats, making it challenging to oversee multiple areas of responsibility. This challenge is even greater when owners lack peers who can provide support, feedback and accountability. Over time, access to trusted external input becomes invaluable for business leaders.
There are many ways majority owners can obtain this type of guidance, including organizations such as Vistage or Entrepreneurs’ Organization, executive coaching and other leadership development programs. Without this support, both the owner and the company may hit a ceiling that is difficult to overcome. Additionally, owners lack external support face a significantly higher risk of burnout due to the pressure of feeling solely responsible for the company’s success.
Conclusion
The new year brings potential for change and growth, but repeating the same actions while expecting different results remains a flawed approach. Majority owners who want to elevate both themselves and their businesses must be willing to embrace change to achieve better outcomes. The three resolutions discussed here offer pathways to improved employee productivity, a more dynamic and experienced leadership team, and a stronger support system for the majority owner. Majority owners who act on these resolutions in 2026 will position themselves and their companies for success this year and beyond.