Abstract and Keywords
Motivated by data on the impact of stock compensation, many companies wish to provide their employees with an ownership interest in their stock. Whether they use stock options, direct share ownership, or other approaches to employee ownership, those companies must adapt their plan design to the specifics of labour law, securities’ requirements, tax regimes, privacy laws, and other issues in various countries. This article suggests guidelines for companies to design their plans by reviewing best practices in equity compensation, beginning with single-country employers and then expanding to companies with international employees. Companies are wise to begin with their ideal plan design and then adapt it to reflect legal requirements, taking into account that some companies must accommodate the requirements of multiple countries. The form of employee stock compensation will affect the development of ownership cultures at these companies, and therefore the impact of employee ownership on the companies’ performance.
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