Document background
The Employee Share Agreement serves as the primary legal instrument for implementing employee share ownership programs under Dutch law. It is typically used when companies wish to offer employees an ownership stake as part of their compensation package or retention strategy. The agreement needs to comply with Dutch corporate law, particularly the Civil Code (Burgerlijk Wetboek), employment regulations, and tax legislation. It is suitable for both private and public companies, though specific provisions may vary based on the company's listing status. The document outlines share allocation details, vesting schedules, transfer restrictions, and termination consequences, while addressing tax implications under Dutch tax law. Companies commonly implement this agreement as part of broader employee incentive schemes, ensuring alignment with shareholders' interests and long-term employee retention.
