Design of an employee stock ownership plan.

How to Design Your Equity Plan?

Employee stock ownership is now an essential tool for attracting, retaining, and motivating top talent.

By aligning the interests of employees, shareholders, and executives, it fosters a more unified and productive corporate culture.

However, beyond general principles, the success of such a program depends largely on developing a clear, fair, and understandable equity plan that aligns with the company’s objectives and culture.

Otherwise, despite laudable intentions, the company exposes itself to several risks: grants that are misunderstood and perceived as unfair, excessive dilutions that could pose problems for future financing rounds, tax risks…

Which security? BSPCE or AGA? Which employees are eligible? What grants should be awarded for which job level and in which country? How should individual performance (“refresher grants”) and promotions (“promotion grants”) impact grant packages? What should the vesting period be? etc.

These are all complex questions that must be considered before implementing any employee stock ownership plan, and the answers must take into account the company’s objectives, its equity story, and its talent management and career development strategies.

To assist you and help maximize the impact of your grant plan, Equify has partnered with Alexis Morin, a compensation & benefits (C&B) specialist, to offer you a new service providing guidance in the design of your employee stock ownership program.