A video series by Skeppsbron Skatt, Taxand Sweden

 

We observe a sustained interest from companies seeking to reward employees through various incentive programs.

 

An incentive program serves as a supplement for companies aiming to go beyond regular salary, benefits, and cash bonuses. It provides employees with the opportunity to acquire shares, options, or cash.

 

Compensation from an incentive program is typically tied to continuous employment during a specified vesting period, often contingent on meeting various performance criteria. Additionally, individuals may need to make a private investment to participate.Various instruments offered through an incentive program include:

 

  • Shares
  • Warrants (Sw. “teckningsoptioner”)
  • Employee stock options (Sw. “personaloptioner”)
  • Qualified employee stock options (Sw. “kvalificerade personaloptioner”)
  • Synthetic options

The process of establishing an incentive program typically spans several years, from initial discussions to program conclusion, where participants receive their consideration. What steps must a company take to implement an incentive program? What are the requirements for those wishing to participate?

 

Skeppsbron Skatt presents a series of 5 episodes, delving into the assistance needed in different phases of an incentive program for both employers and employees.

 

In the latest Episode 2Alina Lundberg outlines considerations during the implementation phase.

 

In the first episode, Björn Johansson explores the design phase. In case you missed it, you can catch up here.

 

Stay tuned for Episode 3, coming soon!

 

Skeppsbron Skatt’s Incentive Group offers full service in terms of design, implementation and analysis of incentive programs. Contact Björn Johansson or Alina Lundberg for more information.

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Article tags

Employee | Sweden | Tax | Tax Policy

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