Employee Stock Ownership Plan PSOP
Offer your employees a share in your company. All at a transparent package price of CHF 2,480
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To retain key team members in new startups and growing companies, and to attract new talent, models have been developed where employees can be involved in the company's success. An efficient setup of the respective participation plan can increase both the attractiveness of the employer and the productivity of the employees.
The PSOP employee participation package efficiently and cost-effectively covers strategy, setup, legal documents, and legal clarifications, including personalized expert advice and legal documents tailored perfectly to the startup.
About the Package
The earlier ownership interests in the company or the chances thereof are clarified, the better. A well-structured participation plan can prevent so-called "cofounder disputes" and ensure that new employees have a strong incentive to commit to the company long-term.
A PSOP transparently regulates who gets what, when, under what conditions, and what happens if one of the participants leaves the company or reduces their performance. We therefore recommend addressing this issue at an early stage. Often, it can be advantageous in recruiting new employees if there is already an employee participation program in place.
Target Audience
Companies seeking an instrument for (i) motivation, (ii) retention, and (iii) additional compensation for employees.
Process and Duration
Typically, setting up a Stock Option Plan (PSOP) takes between 2-6 weeks. The process steps include:
- Kick-off meeting (goals, strategy, and key plan variables)
- Information exchange (collecting necessary information through efficient processes and questionnaires, with support provided for completion)
- Tailored legal documents (drafting all necessary legal documents and adjusting existing ones, such as employment contracts)
- Personal consultation & finalization (discussion of all documents, clarification of open questions about the participation plan)
- Conclusion (finalization and provision of a guide with tips for plan management)
Services
The PSOP package includes personal consultation, best-in-class templates, and tailored adjustments to the company. It covers:
- Comprehensive consultation on the participation plan
- Implementation tailored to the company's strategy and goals
- Advice on key variables (vesting plan, plan size, exercise price, etc.)
- Preparation of legal documents including allocation agreements
- Adjustment of existing documents as needed (e.g., employment contracts, shareholder agreements)
- Guide for plan management
- Guide with key points for employees
Legal Questions
All legal questions can be personally clarified during the kick-off meeting and the workshop where all documents are discussed.
Price
Fixed price CHF 2,480 incl. VAT.
You will receive an individual offer for the legal package. If you have any special requests or circumstances to be considered, please mention them in the free text in the request form.
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What do I need to know about the Employee Stock Ownership Plan (PSOP)?
Payments related to a PSOP are considered taxable income for the employee. This means that the company must pay social security contributions on this amount, and for the employee, it is subject to income tax.
The core document is the participation plan, which details all aspects such as vesting, eligible participants, and conditions.
Additionally, an individual allocation agreement is concluded with each participant.
Up to the seed phase, it is recommended to distribute between 7-15% of the company shares. This percentage decreases over time as the company's value increases.
No, under a PSOP, a participant only receives contractual rights to participate in the company's success. However, they do not have the right to attend shareholder meetings or vote.