��������Ƶ

An Equity Incentive Plan lets companies reward key employees with ownership stakes through stock options, restricted shares, or similar benefits. Swiss firms use these plans to attract talent and align employee interests with company success, especially in competitive sectors like technology and financial services.

Under Swiss law, these plans must comply with the Code of Obligations and specific tax regulations. They typically outline vesting schedules, exercise prices, and conditions for share ownership. Companies often structure these plans to take advantage of favorable tax treatment while protecting both employer and employee interests through clear participation rules.

Swiss companies benefit most from Equity Incentive Plans when competing for top talent in high-growth industries or during expansion phases. These plans prove especially valuable for startups and scale-ups looking to conserve cash while offering compelling compensation packages to attract skilled professionals from larger corporations.

The ideal time to implement an Equity Incentive Plan is before a major hiring push or when preparing for significant company milestones like funding rounds or IPOs. Swiss tax advantages make these plans particularly effective for companies seeking to establish long-term employee commitment while managing their compensation costs within the framework of local regulations.

• Restricted Share Plans: Grant actual company shares with time-based vesting restrictions and dividend rights
• Stock Option Plans: Allow employees to purchase shares at a predetermined price after a vesting period
• Phantom Share Plans: Provide cash payments linked to share value without actual equity transfer
• Performance Share Units: Tie share awards to specific company or individual performance targets
• Employee Share Purchase Plans: Enable regular share purchases at discounted prices through salary deductions

• Board of Directors: Approves and oversees the Equity Incentive Plan structure, ensuring alignment with company strategy
• Legal Counsel: Drafts plan documents and ensures compliance with Swiss corporate and tax laws
• HR Department: Administers the plan, manages participant communication, and tracks vesting schedules
• Eligible Employees: Participate as plan beneficiaries, typically including executives, key managers, and valuable specialists
• Tax Advisors: Guide structure optimization for both company and participant tax efficiency under Swiss regulations

• Company Structure: Document current share capital, existing shareholders, and available shares for allocation
• Plan Parameters: Define eligible participants, vesting schedules, and exercise prices
• Performance Metrics: Establish clear, measurable targets if linking equity grants to performance
• Tax Impact: Gather information on Swiss tax implications for both company and participants
• Board Approval: Prepare board resolution documents authorizing the plan structure
• Documentation: Use our platform to generate compliant plan documents, participant agreements, and required disclosures

• 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 Pool: Maximum number of shares available and allocation methodology
• Termination Rules: Rights and obligations upon employment termination or company exit
• Tax Provisions: Treatment under Swiss tax law and participant obligations
• Administration: Board powers, plan modification rights, and dispute resolution procedures

An Equity Incentive Plan differs significantly from a Simple Agreement for Future Equity (SAFE) in several key aspects under Swiss law. While both involve company equity, their structures and purposes are quite different.

• Purpose and Timing: Equity Incentive Plans provide immediate or scheduled equity benefits to employees, while SAFEs are investment instruments that convert to equity at a future financing event
• Target Recipients: Incentive Plans target employees and executives as part of compensation, whereas SAFEs are designed for early-stage investors
• Legal Structure: Incentive Plans require detailed vesting schedules and employment conditions, while SAFEs are simpler contracts focusing on conversion terms and valuation caps
• Tax Treatment: Employee equity plans have specific Swiss tax implications and reporting requirements, while SAFEs are treated as convertible instruments with different tax considerations