What to consider when implementing an incentive program - Episode 5, summary

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

 

Preparation and administration of 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 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 guides 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. watch episode 4 here!

 

  • In our fifth and last episode, Fredrik Ekstedt is wrapping up and summarizes the different phases of an incentive program, from design to the program’s end.

 

 

If you have any questions regarding the incentive program and the various parts, you are most welcome to contact Skeppsbron Skatts Incentive group.

Björn Johansson
Senior Partner, Incentive Programs