Make the difference
Your employees are the engine behind your company. You want to offer them the best salary possible to keep them motivated to work for you. By optimizing their variable reward, they can achieve a higher net amount, which they will find very rewarding indeed. As an employer, you make the difference.
How does it work
If you would like to offer your employees a bonus, there is an alternative to a cash bonus: option plans. The following conditions apply when granting options.
- Blocking period: it is not possible to sell or exercise the options during a specific period of time
- An option plan cannot replace a normal salary, nor a 13th month’s payment or holiday pay
- The reward must be proportional to the ordinary salary
- The employer can decide to award a bonus at his own discretion.
At Degroof Petercam you can choose from two types of stock option plans: short-term option plans and long-term option plans. One of the differences between the two forms is the duration of the so-called blocking period, in other words the period during which you are obliged to keep the options in your possession after their acceptance. In the case of short-term options the blocking period is only 8 hours, whereas for long-term options it is a full year. In the case of long-term options the tax amount to be paid is calculated on a lower benefit in kind.
While a bonus paid out in the form of stock options offers the employee the prospect of a higher net amount than a cash bonus, he might also might end up with less or even nothing. There is indeed a market risk and a counterparty risk to consider. The longer the options are held, the higher these risks can be.
Save and reward
Pursuant to the law of 26 March 1999, no social security is due by the employer nor the employee for a reward paid in options. You can choose to attribute that benefit to the company or to the employee, or even split it 50/50? You decide! When you attribute the social security benefit (or part of it) to the employee, he or she basically obtains a higher gross bonus amount.
Everything takes places via a secure online platform. With our brand-new application, employees can consult information, make a choice, or, for example, accept, exercise and sell options in no time, not only via their computer, but also via their smartphone or tablet.