A motivational, or incentive plan is a tool to reward and motivate employees; its aim is to attach employees to the company, usually highly qualified or employed at higher levels in the organization. The plan is based on granting employees free or partly-free shares, stock options or other financial derivatives.
We provide tax advisory services in the process of developing and implementing incentive plans based on shares and share options. The aim of our consultancy is to create a personnel motivation program which does not require spending of the company’s own capital and allows linking rewarding employees with the results of the company or individual employees.
The scope of service
Developing the company incentive plan (in the form or shares or share options) is delivered in stages:
analysis of the personnel policy and business strategy of the company in the context of the possibility of using incentive plans
- developing a strategy of implementing the incentive plan
- determining the tax implications of the incentive plan in the client’s company and obtaining tax interpretations
- preparation of legal documentation, including regulations, draft resolutions
- legal and tax support for the incentive plan
- support in the implementation of the program.