Compensation for employees in stocks and options is no longer save to the high-tech industry. Traditional industry, trading, and service organizations can also build compensation mechanisms for their employees based on shares, options, and other tools; the aim of the reward mechanism is to give employees a sense of belonging and commitment.
Compensation with options and shares has become popular in the field of high-tech and technology. Mature organizations are building a compensation program that encourages employees to identify with the company’s goals and contribute to its growth through a sense of partnership: “The organization will succeed, and then the value of my share will increase too.”
In most cases, start-ups use the stocks or options route because they want to recruit talented people; on the other hand, the cash-flow prevents them from providing high salaries. Therefore the options route is an alternative way to offer these professionals (talented) employees. To recruit them as business associates, with a shared way and goals, with a belonging sense and commitment to success during the long awaiting to the exit.
Route 102
The allocation of options under section 102 is a general statement that is used as a slang that holds a whole world.
Section 102 is a section of the IRS that deals with how the employee must be taxed on the benefit he received from the company.
The various clauses and regulations that evolve from the above clause define several compensation paths, such as RSU (Restricted Stock Units), ESPP (Employee Stock Purchase Plan), and the various applicable tax tracks (such as Profit Track, Allocations with or without trustee and more).
Auren’s taxation experts will work on a solution, which will allow the employee to defer the tax for the benefit he received, until the day he meets the money.
The other route
Auren ‘s diverse team of experts in Israel develops additional solutions to reward employees.
Often, we tend to drift into slangs and trends borrowed from the high-tech and technology worlds, that are exposed in the media and forget that there are more creative and diverse options to offer employee benefits.
The worlds of industry and commerce, which include traditional industrial companies or companies that are not traded on the stock exchange, often use rewards derived from results, such as: reaching departmental goals, and sometimes organizational ones.
The combined route
This route is one of the alternatives, represents a creative reward route, which we build to customize for organizations that provide services, to young start-ups and to veteran organizations that have aroused the need to reward senior staff.
Finding creative solutions for rewarding and retaining employees must be done by a broad and comprehensive view of the organization and the goals it faces.
By combining professionals consultants’ opinions from the fields of legal, tax and business development consultants and includes sales goals, etc., makes it possible for such solutions to exist.
Our multidisciplinary team of experts enables veterans and young organizations to reach the optimal solution for the organization while preserving the interests of employees, management, and owners.
Then let’s talk. Call us, write us a Email or ask us for an appointment.