Employee participation
plan: ESOP

Offer your employees a share in the company. At the transparent package price of CHF 3'015.-

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In order to retain key team members in new start-ups and growing companies and to attract new talent, models have been developed to give employees a stake in the company or its success. An efficient set-up of the participation plan can increase the attractiveness of the employer as well as the productivity of the employees.

 

The ESOP employee share ownership package covers strategy, set-up, legal documents and tax clarifications efficiently and cost effectively, including personal advice & legal documents perfectly tailored to the start-up.

For whom is the legal package best suited? 

Companies looking for a means to (i) motivate and (ii) retain employees as well as (iii) provide them with additional compensation. At the same time, it can also protect a company's liquidity in an early stage when the first team members are compensated primarily through equity securities.

 

How long does it take? 

Typically, it takes between 2-6 weeks to set up an employee stock option plan (ESOP). The process steps include: 

  • Kick-off meeting (goals, strategy & key plan variables)
  • Information sharing (gathering the required information through efficient processes & questionnaires which we assist in completing)
  • Customised legal documents (preparation of all important legal documents and adaptation of existing documents, e.g. employment contract) 
  • Personal consultation & finalisation (discussion of all documents, clarification of open questions regarding the participation plan)
  • Closure (finalisation and guide with tips on how to manage the plan) 

 

What do I get?

  • The stock option plan / ESOP package includes personalised advice, best-in-class templates and customisations tailored to the company. The following is covered: 
  • Comprehensive consultation relating to the participation plan & taxes for the Canton of Zurich (other cantons upon request)
  • Advice on important key variables (vesting plan, size of plan, exercise price, etc.)
  • Implementation adapted to the strategy and objectives of the company
  • Preparation of the participation plan document, incl. an allocation agreement
  • Preparation of capital actions (articles of association, shareholders' agreement and employment contracts)
  • Guide for the management of the plan
  • Guide with the most important points for employees

 

Legal questions

In the kick-off meeting as well as in the workshop, in which we discuss all documents, all legal questions can be clarified individually. The action option plan package also includes a comprehensive guide, with tips and guidance on how to manage the plan.

How much does the package cost?

Fixed price of 3,015 CHF incl. VAT 

In addition, there are 600 CHF for the notary and 600 CHF for the commercial register, if an increase in capital is necessary. You will receive an individual offer for the legal package. Do you have special requests or circumstances that should be taken into account? Mention them in the free text section in the request form.

 

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What do I need to know about the employee participation plan?

- When shares are transferred to the employee, the difference between the exercise price and the market value shall apply at the - -

- Employees as taxable income.

- If the shares are sold at a later date at a higher value, a tax-free capital gain can generally be realised.

The company must pay social security contributions on the portion that is regarded as wages by the employee.

- The core element is the participation plan. All details, such as vesting, assignees and conditions, are regulated in this agreement.

- An allocation agreement is then concluded with each participant individually.

- Tax ruling

- Amendment of the articles of association (if a conditional capital increase becomes necessary)

Between 7-15% up to the seed stage. This percentage decreases over time as the value of the company increases.

Yes. In principle, when shares are issued (via a capital increase), at least the nominal value must always be paid (either by the employer or the employee).

Yes. Upon allocation of the shares, the employee becomes a shareholder with all shareholder rights. That is why it is important to have a well-structured and well thought-out shareholders' agreement to regulate the rights and obligations of the shareholders in detail.