An option plan is a plan created for employees through which they are granted options on company shares or the shares of a third-party company or a mutual investment fund (SICAV).  These options give the employee the right to acquire the underlying shares for a given time period (exercise period) at a to be determined or pre-determined price (the exercise price).

 

An option plan can be put into place at an international level. With minor modifications consistent with regulations in effect, the same stock option plan can be offered to members of a similar target group around the world.

 

 

All legally constituted Belgian or foreign companies can create an employee option plan. Applicable taxation rules are dependent on the characteristics of the stock option plan (own shares or not, length of freezing period, length of exercise period …).

 

 

The typical target group for an option plan consists of directors and managers because of their strategic influence on the company’s results, as well as of the experts who make strong contributions to the company.

 

 

An option plan increases the motivation and performance of a given target group of employees and builds loyalty. The number of options received can be directly linked to their past, current and future expected performance.