Document background
The Employee Stock Option Agreement is a fundamental instrument used by Irish companies to provide employees with the opportunity to acquire ownership in their employer through share options. This document is particularly crucial for growing companies, start-ups, and established businesses operating under Irish law who wish to attract, retain, and motivate key talent by offering equity incentives. The agreement must comply with Irish corporate law, particularly the Companies Act 2014, and tax legislation, including the Taxes Consolidation Act 1997. It typically includes detailed provisions on grant terms, vesting conditions, exercise procedures, and tax implications, while also addressing requirements specific to Irish jurisdiction regarding share schemes and employee benefits. This type of agreement is commonly used as part of a broader compensation strategy and often forms part of a company's equity incentive plan.
