ESOP: Employee Stock Ownership Plans

1. The possibility of retaining key employees, whose ownership interest will be profitably capitalised in case of success (e.g. in case of capital shortage in the product development phase)
   
2. Motivating employees to personally contribute to the growth of the company
   
3. Ensuring employee loyalty in a highly competitive environment
   
4. Increased employee interest in the running of the company
   

Strong excess demand for labour has been dominating the Czech labour market for a number of years. This is then reflected in the efforts of companies to provide the maximum range of benefits to their current and future employees in order to both support the stability of the existing workforce and increase attractiveness in the labour market. Be one step ahead. Introduce employee stock ownership plans in your company.

Are you considering the implementation of employee stock ownership plans but wondering whether they are right for you? You may be pondering some of the following questions:

• We have an LLC – is this the right choice for us?
  
• How much of a ownership interest should we give to employees? Should we provide it free of charge?
  
• To which employees? All of them? Or just the top management?
  
• Do we want employees to have decision-making rights?
  
• How do we draw up documentation and integrate this benefit into internal policies?
  
• What will be the tax burden on employees? Will we provide them with support?
  
• How do we account for expansion abroad?
  
• Are we planning an IPO? Does this play a role in setting the plan?
  
• What types of plans are common in the marketplace anyway?
  
• What to look out for? 
  
• How favourable is the Czech legislation?
  

We will guide you through the entire process, and together we will find the right answers and tailored solutions for you.

• Design workshop: we will discuss your intention, plans and expectations
• We will tailor the chosen solution for you from a legal and tax perspective 
• We will ensure its implementation in your company
• We will present the plan to your employees
• We will also provide tax support for your employees