Adopting compensation strategies to align employee-shareholder’s interests
What are share-based payments?
In the modern business landscape, share-based payment schemes have been a pivotal tool for incentivize employee performance and align the interests of employees with those of shareholders, by giving them a stake in the company’s future success.
Accounting is governed by specific standards (such as IFRS 2 and ASC 718).
Additional rules on the taxation of those options arise from the §19a ESTG. Often, the taxation of dry income should be avoided.
What are the challenges
Valuation – share-based payment is itself a complex scheme, and as a result determining the fair value of share-based payment is complicated, involving projecting the performance of a company in a fluctuating market environment.
Modelling – There are no standardized models, as the KPIs and payment structures vary and are tailored for different firms to meet specific objectives. As a result, specialized knowledge is required to build the model.
Accounting and Taxation – We support and advice you on the accounting of share-based payments in line with the different applicable GAAPs and their taxation.
What we can offer
We provide expert advice on accounting for share-based payments under various accounting standards according to your needs.
Leveraging our know-how with advanced valuation modelling techniques, we can help you with the valuation of share-based payment.
We can offer information sessions for your company and related departments to deepen their understanding of share-based payment schemes and their implications.
What value you can gain
Gain peace of mind with our expertise ensuring that your share-based payment schemes are accounted for in line with the relevant standards.
Flexible advice: Regular support on the valuation or advice on the implementation of the valuation model depending on your needs.
Our expert advice on all aspects, from the design to the implementation of share- and cash-based incentive plans.
