Employee Participation Plans

Choose and set up the right participation plan for your company.


ESOP / PSOP

Employee Participation Plans

Choose and set-up the right participation plan for your company.


ESOP / PSOP

Why decide to set up an employee participation plan?

Keeping important employees over a longer period is crucial for growing companies, as high turnover increases hiring budgets, impacts IP creation and company culture in a negative way.

Retain talent

At the start, businesses don’t always have the liquidity and cashflow to pay high salaries. Employee options are a means to close this gap and give growing companies the chance to compete for top talent.

Compensate with non-cash options

The earnings potential for those participating in the option plan is directly linked to company growth. This results in increased motivation and dedication to make the company successful and exceed targets.

Reward value creation

In Switzerland, there are mainly two types of employee participation plans: The Employee Stock Option Plan (ESOP) and the Phantom Stock Option Plan (PSOP)

Which employee participation plan is right for your company?

ESOP

An Employment Stock Option Plan (ESOP) is a contract that allows employees to purchase company stock at a set price in the future.


This plan is favoured by companies that wish to give key employees actual co-ownership of the company.

A Phantom Stock Option Plan (PSOP) is a deferred cash bonus program that simulates the effect of an ESOP without giving actual stock.


This plan is favoured by companies that want to attract, reward, and retain talent without diluting shareholder equity.

PSOP

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Not sure which option might be best for your company?

Talk to us!

How can LEXR help?

Designing your compensation plan efficiently will both increase your attractiveness and boost the productivity of your employees. Our experts will guide you through the most critical aspects such as the pool size, the strike price, or the vesting schedule.

Expertise

Legal documents

Every participation plan has different tax implications for both employees and the company. Get an in-depth understanding of the tax implications in order to take an informed decision and guide your employees through the process.

Tax know-how

We will tailor our time tested legal documents to your company's needs.

From corporate actions to employee documents and the plan itself, our legal documents cover the full range required for your plan.



Packages and pricing

PSOP

Package for Swiss Startups

CHF 2'300

Flat fee package contents:

  • Assessment of the best fitting compensation plan for your company
  • Advice on the key variables of your plan (vesting schedule, size of the plan, strike price, etc.)
  • Preparation of the participation plan document incl. allocation agreement
  • Preparation of the corporate actions (articles of association, shareholders' agreement and employment agreements)
  • Comprehensive advice (including tax issues for the company in the Canton of Zurich - in other cantons upon request)
  • ‘How-to’ guide for the administration of the plan
  • Guide for the most important points for employees (in human language, not legalese)
  • Assessment of the best fitting compensation plan for your company
  • Advice on the key variables of your plan (vesting schedule, size of the plan, strike price, etc.)
  • Preparation of the participation plan document incl. allocation agreement
  • Adjustment of other documents as required (employment agreement, shareholder's agreement)
  • Comprehensive advice
  • ‘How-to’ guide for the administration of the plan
  • Guide for the most important points for employees (in human language, not legalese)

Flat fee package contents:

CHF 2'800

Package for Swiss Startups

ESOP

Schedule a call

Upon request


Our experts are happy to assist in other employee options and compensation plan matters, such as:


  • Advice on or changes to an existing PSOP / ESOP
  • Advice on international rollout
  • Local implementation of an international plan
  • Other bonus schemes for employees

Special requests

Managing your ESOP / PSOP

To manage your ESOP / PSOP in an efficient and cost-effective manner, we recommend our partner Ledgy.


Ledgy is an online share register platform that helps startups handle employee incentive plans, financing rounds, and investor reports.


While the Standard Package of Ledgy is free, you will also get a 30% discount on you first year when you book your ESOP or PSOP flat fee package with LEXR.

Get your ESOP / PSOP now!

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We're ready to get started!

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