We support you in the selection, development, and implementation of the employee participation program that fits your company and your business strategy.
We develop stock plans, stock option plans (ESOP), and phantom stock plans (PSOP).
Overview of benefits
Competitiveness
Despite lower base salaries, attractive and competitive compensation packages can be offered to employees.
Correct Corporate Culture
Employee participation attracts dedicated staff who want to actively contribute to the development and success of the company.
Owner Mentality
Employees develop a deeper sense of responsibility and stronger commitment through participation.
Reward Loyalty
Participation plans create strong incentives for employees to perform well and stay with the company in the long term.
Stable Employment Relationships
Participation structures can have a positive impact on employee turnover.
Reduce Financial Risk
Startups can alleviate financial constraints through equity programs by partially replacing salaries with company shares. This reduces the pressure on liquidity and mitigates the risk of failure due to lack of financial resources.
Common Success Goals
Employee equity creates a win-win situation where both the company and the employees work towards the same goal - company growth.
Show Appreciation
Enable your team to participate in the jointly created value creation.
Recognitive Compensation
Founders can properly reward their employees for their hard work and contribution to shared success with participation programs.
Types of participation plans
Stock plan
With a stock plan, employees receive the opportunity to purchase shares of the company at a discounted price or to receive them as part of their compensation package.
Main features
Ownership - Employees instantly become shareholders and thus receive the associated shareholder rights (e.g., voting rights).
Buyback rights - Employee shares are often combined with buyback rights by the company, should employees leave the company early.
Tax consideration - The taxation of shareholdings is structured differently - possibly more favorably - than the taxation of stock options and phantom shares.
Employee Stock Option Plan (ESOP)
As part of stock option plans (ESOP), employees are given the option to purchase shares after a certain period at a predetermined price.
Main features
Option rights - Employees receive options to purchase shares, becoming shareholders only at a later time.
Vesting - Options generally have to be "earned" over a period of three to four years (so-called time-based vesting).
Voluntary Exercise - Employees can freely decide whether to exercise their options and purchase shares at the exercise price. They will usually exercise this right when the exercise price is below the market price of the holdings.
phantom share plan (PSOP)
With a phantom stock plan (PSOP), employees are involved in the success without real shares being issued. Instead, cash payments are made based on the performance of the shares.
Main features
No shareholder status - Phantom shares entitle participation in the financial success of the company. In contrast, there is no right to shareholder status.
Cash withdrawal - At the time of exercise, employees receive a payout that corresponds to their phantom share ratio. The taxation is comparable to that of a bonus payout.
Simple administration - PSOPs are easier to manage as no stock transfers take place.
