Equity participation—general
There are two main ways of providing long-term motivation to employees through actual equity participation, firstly, by the issue of shares or secondly, by giving the employee the right to acquire shares (share options). In both instances, the incentive can be varied in a number of ways; for example, the employee can be allocated free shares or share options on the basis of their performance, they can be given the right to purchase shares or options at less than their market value, or they can be allowed to acquire shares (immediately or at a future date) at their current full market value. Where the employee immediately acquires shares at less than market value, there is an immediate financial benefit to the employee, provided there is a market for disposal. However, any right to acquire
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:37