Equity compensation
to share in the equity and success of the company
plus other forms of employee participation
We analyze, evaluate, develop, plan, design, create, set out, support, implement …
  • Employee participation across various formats
  • Participation in non-listed companies
  • Long-term incentives using stock, stock-based or other instruments
  • Programs with deferred realization of cash, stock or units
  • Employee stock purchase plans (ESPP), stock ownership plans (ESOP)
  • Various formats of plan rules
  • Processes, documents and procedures for granting, vesting, realizing or lapsing awards
  • Communication of participation programs
  • Compliance with guidelines, rules and laws
The participation in the success or equity of the company is an important part of the compensation of managers. Some companies have recognized the advantage of employee participation at all levels and entertain such broad-based programs.

In the narrow sense the participation of employees means offering share-based instruments in the compensation mix. In particular, the participation in the form of LTI programs is well established.
This discipline consists of programs or plans that enable employees to take a stake in a company’s equity or borrowed capital. Managers and employees receive part of their compensation in the form of shares, financial instruments related to stock, or a stake in the company. The design and management of such programs is a specialist area even among compensation experts, as it requires specific interdisciplinary knowledge.

We assist HR departments and compensation management teams at local and international companies with this challenging responsibility. We can also temporarily take over all managerial, administrative and development-related tasks for programs of this kind.

Thanks to many years of experience in corporate practice and consulting, we have extensive expertise in the design and development of these programs, and the operational knowledge and understanding to implement them at local and international level.

Implementation of compensation programs nationally and internationally requires consideration of corporation law, tax law and other provisions, guidelines and legislation related to allocation of shares, share ownership and investment in the company. Added to this is the requirement for proper accounting and correct valuation in the accounts. We rely on the advice of internal or external experts for matters relating to tax, corporate law and other key areas. We can plan, prepare, coordinate, support and implement these processes.

Programs based on stocks and/or shares are used for variable compensation. This area of expertise is closely connected with compensation systems, executive compensation and international compensation. Participation programs are essential in order to attract and retain managers, talented professionals and specialist, qualified staff.
Examples:
  • Analyze and assess existing programs with respect to effectiveness and compliance
  • Determine new parameters or design new programs
  • Design employee participation without equity instruments
  • Implement new programs or processes
  • Support the international rollout of plans to other jurisdictions
  • Define the rules and edit regulations
  • Describe programs and their functionalities
  • Prepare and support the communication to plan participants
  • Ensure compliance of systems and processes in all jurisdictions involved