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An Equity Incentive Plan lets Belgian companies reward employees with ownership stakes through stock options, restricted shares, or similar benefits. These plans align with Belgian social security and tax regulations while helping businesses attract and keep talented staff by giving them a chance to share in the company's success.

Under Belgian law, these plans must clearly outline vesting schedules, exercise conditions, and tax implications for participants. Companies often structure them as part of their total compensation strategy, following the specific requirements of Belgium's Stock Options Act and corporate governance rules for listed entities.

Consider implementing an Equity Incentive Plan when your Belgian company needs to attract top talent in competitive markets or motivate key employees for long-term commitment. These plans work especially well during startup growth phases, before major funding rounds, or when preparing for an IPO.

Many Belgian tech companies and scale-ups use these plans to compete with larger firms for talent while preserving cash flow. The timing often aligns with business milestones like expansion phases, new product launches, or when facing retention challenges. Just ensure your plan complies with Belgian tax regulations and social security requirements before rolling it out.

• Stock Options: Most common in Belgian tech companies, offering employees the right to buy shares at a fixed price within a set timeframe
• Restricted Share Units (RSUs): Grants actual company shares after specific conditions are met, popular among larger Belgian corporations
• Performance Shares: Links equity rewards to company or individual performance metrics, common in Belgian listed companies
• Phantom Stock Plans: Provides cash bonuses based on share value increases without actual share transfer, useful for private companies
• Share Purchase Plans: Allows employees to buy company shares at a discount, often with favorable tax treatment under Belgian law

• Board of Directors: Approves and oversees the Equity Incentive Plan structure, ensuring alignment with company strategy
• HR Managers: Administers the plan, handles participant communications, and manages vesting schedules
• Legal Counsel: Drafts plan documents, ensures compliance with Belgian corporate and tax laws
• Employee Participants: Receive and exercise equity benefits according to plan terms and vesting conditions
• Tax Advisors: Guide on Belgian tax implications and reporting requirements for both company and participants
• Company Secretary: Maintains share registers and handles administrative aspects of share issuance

• Company Structure: Gather details on share capital, existing shareholders, and available share pool
• Plan Parameters: Define vesting schedules, exercise prices, and eligibility criteria for participants
• Tax Framework: Review Belgian tax implications for both the company and participants
• Legal Requirements: Check compliance with Belgian Company Code and social security regulations
• Board Approval: Prepare board resolutions authorizing the plan implementation
• Documentation: Draft participant agreements, plan rules, and required disclosures
• Administrative Setup: Establish systems for tracking grants, vesting, and exercises

• Plan Purpose: Clear statement of objectives and scope of the equity incentive program
• Eligibility Criteria: Detailed participant qualifications and selection process
• Award Terms: Specific types of equity awards, vesting schedules, and exercise conditions
• Share Reserve: Maximum number of shares available and any dilution limits
• Tax Provisions: Belgian tax treatment and reporting obligations
• Administration: Powers and duties of plan administrators
• Termination Rules: Impact of employment termination on equity rights
• Amendment Terms: Procedures for plan modifications and participant rights
• Data Protection: GDPR compliance and personal data handling procedures

An Equity Incentive Plan differs significantly from a Simple Agreement for Future Equity (SAFE) in several key aspects under Belgian law. While both involve company equity, they serve distinct purposes and operate differently.

• Primary Purpose: Equity Incentive Plans provide ongoing employee compensation and retention through share-based rewards, while SAFEs are investment instruments that convert to equity during future funding rounds
• Target Users: Incentive Plans target employees and key personnel as beneficiaries, whereas SAFEs are designed for early-stage investors and venture capitalists
• Time Frame: Incentive Plans typically have defined vesting periods and exercise windows, while SAFEs remain open-ended until a triggering event occurs
• Tax Treatment: Under Belgian law, Incentive Plans have specific tax advantages for employees, while SAFEs are treated as convertible securities with different tax implications