We recognize a continuous interest from companies that want to reward their employees by offering participation in various types of incentive programs.
An incentive program is a complement for companies that want to reward their employees with something else than/in addition to regular salary, benefits and cash bonuses. Through an incentive program, the employees get an opportunity to obtain e.g. shares, options or cash.
Any value/consideration paid from an incentive program is usually linked to continuous employment within the company/company group during a certain vesting period. It may also be conditional upon various performance criteria that need to be fulfilled before benefitting from any value from the program. Furthermore, it may be necessary for the individual to make a private investment to participate.
A few examples of different types of instruments that may be offered through an incentive program are:
- -Shares
- -Warrants (Sw. teckningsoptioner)
- -Employee stock options (Sw. personaloptioner)
- -Qualified employee stock options (Sw. kvalificerade personaloptioner)
- -Synthetic options
The work with an incentive program is generally a process running over several years – from the point of the company’s first discussions about setting up a program til the vesting and end of the program, where the participants receive any value.
What actions does a company that want to implement an incentive program have to take? What is required in order to participate?
Skeppsbron Skatt presents a series of 5 episodes where we elaborate on what assistance that may be needed in an incentive program’s different phases – Both for the employer and for the employees.
- In the first episode, Björn Johansson elaborates on the so-called design phase, watch episode 1 here!
- In episode 2, Alina Lundberg describes what you need to consider during the implementation phase, watch episode 2 here!
- In episode 3, Daniel Elander talks about the vesting period and questions that may arise for companies and participants during this phase.
The two remaining films will be published over time:
- Episode 4, end of program
- Episode 5, summary
If you have any questions regarding the incentive program and the various parts, you are most welcome to contact Skeppsbron Skatts Incentive group.
