Document background
The Option Grant Agreement serves as the primary legal instrument for companies in Ireland to grant stock options to their employees or consultants as part of their compensation package. This document is typically used when a company wants to align employee interests with company growth and provide additional incentives beyond regular salary. The agreement must comply with Irish company law, tax legislation (particularly the Taxes Consolidation Act 1997), and relevant employment regulations. It contains detailed provisions about the option grant, including the number of shares, exercise price, vesting schedule, exercise conditions, and tax implications. The agreement also addresses specific Irish tax considerations, such as Revenue reporting requirements and potential tax liabilities upon exercise. Companies commonly use this type of agreement as part of their talent attraction and retention strategy, particularly in high-growth sectors and start-ups.
