Employee share

from Wikipedia, the free encyclopedia

An employee share is

  • an instrument of wealth creation in employee hands ,
  • an employee's participation in the employer's company,
  • a pecuniary benefit for the employee,
  • a share that is issued to employees of a company free of charge or at a reduced price.

Employee shares are issued as part of an Employee Stock Ownership Program (ESOP) or, in the case of managerial staff, Executive Stock Ownership Program .

aims

The purpose of issuing employee shares is to achieve the following:

  • Wealth formation in the hands of employees (fair distribution of wealth in an economy)
  • wide spread of share ownership (increase in shareholder quota )
  • Loyalty of employees to the company
  • Increase in employee loyalty to the company

emission

The issue takes place as part of a conditional capital increase in accordance with Section 192 (2) no. 3 AktG . The other shareholders will not receive any compensation for the price loss. The voting share of the existing shareholders deteriorates.

Embargo

Because they are issued at a preferential rate, employee shares are usually subject to a lock-up period of five years, during which they cannot be sold. The custodian bank must observe this blocking period. The only exceptions are in the event of incapacity for work or the death of the employee shareholder.

Furthermore, tax disadvantages are possible if the employee shares are sold again within a certain period of time after the purchase. For shares that were acquired before April 1, 2009, Section 19a of the EStG , which has since been repealed, must be observed. Thereafter, the monetary benefit that accrues in the event of a sale within six years must always be fully taxed. The six-year period begins on January 1 of the year in which the shares were purchased. The same applies if the employee shares are acquired by January 1, 2016 on the basis of an agreement concluded before April 1, 2009 which gives the employee a binding right to purchase the shares at the preferential price ( Section 52 (35) of the Income Tax Act).

Individual evidence

  1. ↑ Employee shares as employee participation

See also

Web links