VPS Employee Share Savings
Why offer an employee share-based savings program?
- To motivate employees to stay with the company over a longer period
- To generate enhanced profitability through the employees’ involvement as shareholders
- To build a corporate culture with a focus on ownership
- Use employees’ ownership involvement as a strategy for success
We offer an application that:
- Delivers reliable and automated processes for allotting and distributing shares
- Is fully integrated with the company’s register of shareholders
- Includes special provisions for primary insiders, employee groups and foreign employees
- Manages incentive programs that involve lock-in periods for shares purchased
- Handles all necessary tax reporting
- Is easy to manage
How will a company implement a share savings program?
VPS Employee Share Savings is made available to companies via account operators, allowing the company to outsource its share-based remuneration program to an experienced specialist that understands the company’s requirements at every stage of the process.
The company invites its employees to enter into a savings agreement to make regular deductions from their salary that are used to buy shares in the company. The company remains responsible for managing the sales of shares to its employees, but the account operator administers the program. Employees can purchase shares without paying brokers’ commission, and will benefit from the annual tax incentives available when buying shares in their employer.
The application also allows for lock-in periods and for allotting bonus shares, giving the company the opportunity to use the program as a tool for attracting and retaining staff in a competitive labour market.
VPS will, in cooperation with your account operator, provide advice and assistance in structuring the employee share savings program to meet your company’s particular requirements.