ESOP and VSOP employee stock ownership plans

Strategy and implementation of the right plan

The biggest part of implementing an employee benefit plan is strategic planning. We first help you understand the key variables and tax implications of the various equity plans so that the best decision can be made for the company and its scalability. Once the decision is made, we prepare all the legal documents for you and implement them with you.

Complete packages & prices

VSOP Package

for Swiss Startups

EUR 1.950 (excl. VAT)

Flat fee package contents:

Expert meeting with our legal experts: strategic planning and advice, discussion of core variables, decision on the most suitable plan

Drafting of the legal documents including the allocation agreement

Feedback round, to clarify all open issues and implement the adjustments

Review of existing legal documents related to the plan

Guidance for the plan management

ESOP Package

for Swiss Startups

EUR 1.950 (excl. VAT)

Flat fee package contents:

Expert meeting with our legal experts: strategic planning and advice, discussion of core variables, decision for the most suitable plan

Drafting of the legal documents including the allocation agreement

Feedback round to clarify all open issues and implement the adjustments

Review of existing legal documents related to the plan

Guidance for the plan management

Employee workshop

A participation plan is only effective if employees believe in the plan.

EUR 1.800 (excl. VAT)

Flat fee package contents:

Kick-off session with our legal experts, the advisory board and the management team

Preparation of the employee workshop according to the management input

Implementation of the workshop with the company's employees

Training concept & manual for future internal employee workshops

ESOP Addition: Tax Ruling

The allocation of genuine shares or options on such shares to an employee generally results in a so-called non-cash benefit. This is treated in the same way as wages for tax and social security purposes. This leads to the so-called “dry-income problem”, as employees have to pay tax on sums of money that they have not yet received in cash. Although special tax regulations exist to prevent taxation at the time of allocation, the applicability of these regulations is highly dependent on the individual case.

To ensure that the tax and social security implications of stock options can be planned for both the employee and the company, we recommend obtaining information from the tax office at the place of business.

Together with the ESOP, we offer to obtain a call report at cost (costs generally between EUR 650 and 1,600).

 

 

More participation plan services

Consulting on or changes to an existing VSOP / ESOP

Consulting on the international rollout of a VSOP / ESOP

Implementation of an international VSOP / ESOP for German employees

Other participation options for employees (direct shareholdings, dormant shareholdings, establishment of employee investment companies)

ESOP and VSOP implementation process

  1. 1
    Expert Session

    In the Expert Session, we address the strategic objectives and potential impact of the plan. Based on our experience through numerous employee benefit plan implementations each year, we can not only provide theoretical advice, but also share practical insights and the current market view with companies.

  2. 2
    Contract drafting

    We draft the legal documents based on our joint session. Our proven and countless tested templates (100+ implementations) ensure the plan is up to date with the startup & VC world.

  3. 3
    Document review

    With the introduction of the employee participation plan, existing legal documents must be reviewed. Here we determine whether existing clauses are compatible with it or need to be adapted. We review the relevant documents and let you know if and what changes need to be made.

  4. 4
    Feedback

    We answer all open legal questions on the topic within the included feedback round. After the feedback has been implemented, we send out the final legal documents for the employee participation plan.

  5. 5
    Plan Management

    Setting up the employee benefit plan is the first step of a long journey. Included in our package is a plan management guide to help companies keep the plan up to date and meet deadlines more easily.

ESOP and VSOP explained simply

An ESOP (or Employee Stock Option Plan) is a plan for genuine employee participation. Under this plan, employees participate directly in the growth of the company through the allocation of real business shares or options on them. ESOPs are usually designed in such a way that the options are not converted into real shares until the startup is sold (exit) or an initial public offering (IPO).

With the VSOP (Virtual Stock Option Plan), on the other hand, employees receive a purely virtual share in the company. The virtual shares serve as a mere calculation factor to put employees in the same financial position in the event of an exit or IPO as if they were the owners of real shares. The employees receive a payment claim against the company and thus participate in the sales proceeds. Due to their contractual nature, VSOPs can be used more flexibly and, if structured correctly, avoid the tax disadvantages and formal hurdles that apply to ESOPs in Germany.

VSOP & ESOP FAQ

About us

We’re a growing team of 30+ legal professionals. Some of our experts include:

  • 1

    Nadine advises founders and startups in all stages of a company’s development, focusing on corporate law issues. Nadine has extensive experience in advising on VC transactions, shareholder agreements and employee stock option plans (VSOP/ESOP) as well as corporate governance issues.  

    Nadine Saalbach, Head of Startup Financing & Venture Capital 

  • 2

    Michele is focused on corporate and commercial law and has a strong background in M&A transactions. At LEXR he advises Swiss and international founders, start-ups, and investors – from incorporation to the first investment rounds, risk financing, complex business transactions, and exits. 

    Michele Vitali, Head of Startup Financing & Venture Capital, Legal Expert 

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