Employee incentive/reward systems

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In the current economic climate, attracting and retaining talent is increasingly challenging for businesses, particularly for start-ups. Consequently, motivating employees has become a critical task that every manager must handle effectively. Our experience in corporate and employment law allows us to ensure that incentive schemes are aligned with the company’s entire legal framework. 

We provide comprehensive legal advice, ranging from the design of incentive schemes, to bonuses and payment arrangements and profit-sharing agreements. We help businesses design Employee Stock Options (ESO) schemes that encourage direct employee involvement in the success of the company. 

We can assist you with the following matters:

  • Designing employee incentive schemes.
  • Developing employee incentive schemes.

Employee Stock Options

Employee Stock Option Plans or ESOPs are not just a numbers game, but also one of the key strategy to involve employees in the company’s growth and encourage long-term commitment. It is an opportunity for employees to buy shares in a company at a predetermined price within a set period of time, giving them the prospect of a direct stake in the company’s success. 

We specialise in helping companies develop effective ESOP plans, taking into account specific rules such as vesting conditions or cliff periods. These legal nuances are essential to ensure that stock options are exercised fairly and transparently. 

In addition, our expertise allows us to advise on more complex aspects, such as good leaver and bad leaver clauses, which can be crucial during the exercise of an option. 

Employee motivation systems in the start-up ecosystem

In the startup ecosystem, employee incentives are a catalyst for creativity for the founders and their legal team. 

Employee incentive systems are key to attracting and retaining top talent during the volatile growth phases of start-ups.  

We understand the requirements of the funds and will work with your team to develop incentive plans that meet these standards and increase the attractiveness of your start-up to private venture capital funds and business angels. 

Tax compliance of incentive schemes

Best practice incentive schemes go beyond labour law principles. 

Our expertise lies in designing schemes that are legally sound, tax-secure and strategically effective. That’s why your incentive plans – from stock options to performance bonuses – are also evaluated through the prism of tax law compliance. Our clients rely on our team for M&A deals, tax, venture capital and private equity and other important business matters. So you can be confident that your incentive plans are in line with industry best practice. 

Experts

BOARD | MEMBER | MENTALITY

Edgaras Margevičius
  • Attorney at Law
  • Managing partner
Andželika Buivydė
  • Attorney at Law
  • Partner
Simonas Milašius
  • Associate
Gabrielė Šinkonė
  • Attorney at Law
  • Head of Family Law Practice Group
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