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 additional 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 consideration paid from an incentive program is usually linked to continuous employment during a certain vesting period. It may also be conditional upon various performance criteria being met. 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 process of setting up an incentive program generally runs over several years – from the point of the company’s first discussions about setting up a program until vesting and end of the program, where the participants receive their consideration.
What actions does a company that want to implement an incentive program have to take? What is required of those who wishes 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, watch episode 3 here!
- In episode 4, Klarabärta Näsholm will guide you through the end of the incentive program and the questions that may arise in connection with the value/compensation from the program being distributed/distributed to the participants.
- In the fifth and final film to be published during April, Fredrik Ekstedt ties the bag together and looks back at all the different parts of setting up an incentive program, from design to completion.
If you have any questions regarding the incentive program and the various parts, you are most welcome to contact Skeppsbron Skatts Incentive group.
