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A Stock Option Plan gives employees the right to buy company shares at a set price during a specific timeframe. Under Belgian law, these plans follow the 1999 Stock Options Act, offering significant tax advantages when structured correctly. Companies use them to attract talent and align employee interests with long-term business success.

The plan outlines key details like the exercise price, vesting schedule, and what happens if an employee leaves. Belgian employers must carefully design these plans to comply with both corporate and social security regulations, particularly around the timing of option grants and the 60-day acceptance period required by law.

Consider implementing a Stock Option Plan when your Belgian company needs to attract and retain key talent without increasing immediate salary costs. This strategy works especially well for scale-ups and tech companies looking to compete with larger firms for skilled professionals while preserving cash flow.

A Stock Option Plan becomes particularly valuable during expansion phases, fundraising rounds, or when preparing for an eventual exit. Belgian tax law offers significant advantages for options granted under qualifying plans, making them an effective compensation tool. The plan helps bridge the gap between current market salaries and what growing companies can afford to pay.

• Stock Option Agreement: The standard form used for individual option grants, detailing exercise price and vesting terms
• Phantom Share Agreement: Offers cash bonuses linked to share value without actual stock transfer, ideal for private companies
• Employee Stock Option Agreement: Specifically designed for employee incentives with Belgian tax-optimized terms
• Stock Option Agreement Private Company: Tailored for closely-held businesses with transfer restrictions and special valuation methods

• Company Board & Management: Approves and oversees the Stock Option Plan, sets overall terms and eligibility criteria
• Legal Counsel: Drafts plan documents, ensures compliance with Belgian corporate and tax laws, especially the 1999 Stock Options Act
• HR Department: Manages plan administration, communicates with employees, tracks vesting schedules
• Eligible Employees: Receive and exercise options according to plan terms, must accept offers within 60 days under Belgian law
• Tax Advisors: Structure plans to optimize tax benefits for both company and participants under Belgian regulations

• Company Details: Gather articles of association, shareholder agreements, and current share capital structure
• Plan Parameters: Define total pool size, exercise price calculation method, and vesting schedule
• Eligibility Rules: Determine which employees can participate and under what conditions
• Tax Structure: Confirm compliance with Belgian tax requirements for favorable treatment
• Board Approval: Prepare board resolution authorizing the plan and option grants
• Documentation: Use our platform to generate compliant option agreements and participant communications
• Timeline: Plan for the mandatory 60-day acceptance period under Belgian law

• Option Terms: Exercise price, vesting schedule, and expiration date aligned with Belgian tax rules
• Eligibility Criteria: Clear definition of who can participate and acceptance procedures within 60-day window
• Share Details: Type and number of shares available, anti-dilution provisions
• Exercise Conditions: Process for exercising options, payment methods, and share transfer procedures
• Termination Rules: What happens to options upon employment ending or company sale
• Tax Treatment: References to Belgian tax legislation and reporting obligations
• Data Protection: GDPR-compliant provisions for handling participant information

A Stock Option Plan differs significantly from an Equity Incentive Plan in several key aspects under Belgian law. While both involve employee compensation through company ownership, they serve different purposes and have distinct legal structures.

• Scope and Flexibility: Stock Option Plans focus specifically on share options, while Equity Incentive Plans can include various forms of equity compensation like restricted stock units, performance shares, and phantom shares
• Tax Treatment: Stock Option Plans in Belgium benefit from specific tax advantages under the 1999 Stock Options Act, while Equity Incentive Plans may fall under different tax regimes depending on the type of awards
• Implementation Timeline: Stock Option Plans require a strict 60-day acceptance period, whereas Equity Incentive Plans often allow more flexible grant and acceptance schedules
• Administrative Requirements: Stock Option Plans have specific reporting and documentation requirements under Belgian law, while Equity Incentive Plans may have varying administrative needs based on the types of awards offered