Further Queries

A video series by Skeppsbron Skatt, Taxand Sweden

 

Our Swedish firm, Skeppsbron Skatt,  presents a series of 5 episodes examining what assistance that may be needed in an incentive program’s different phases, both for the employer and for the employees.

 

In episode 4, the latest of the series, Klarabärta Näsholm focuses on the program’s conclusion and the considerations for distributing value to participants.

 

Read the full article and find episode 4 linked below.

 

– Part 4, end of program

 

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 episode 4, Klarabärta Näsholm is elaborating on an incentive program’s end and questions that come up in connection with any value from the program is distributed to the participants, watch episode 4 here!

 

In case you missed them, you can also watch the previous films on the design and implementation phases here:

 

  • Design phase
  • Implementation phase
  • Vesting period

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 here!

 

In case you missed them, you can also watch the previous films on the design and implementation phases here.

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Article tags

Employee | Sweden | Tax

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