Employee equity-based incentive plans seek to remunerate their employees by offering them an opportunity to participate in the share ownership of the company. There are reasons for doing so in general, but what are the key motivations for businesses operating in Singapore and what trends are we seeing? In this article we look at the different types of schemes that are commonly used, regulatory considerations and what key areas to look at when designing an effective plan.
In Singapore, such plans are commonly issued as share options or share awards. In addition, it is also possible to introduce cash-based incentive plans, which are intrinsically linked to the value of the shares of the company.
Historically, employee stock option (or share option) schemes started to gain immense popularity in the United States (US) following a change in its Internal Revenue Code, as it allowed top executives in the US to pay lower taxes on their overall compensation packages. While this may not necessarily be true under the prevailing Singapore tax regulations, it remains a highly effective and relevant instrument for shaping an organisation's recruitment and retention strategy. The key reasons for this are highlighted below.
Many companies listed on the Singapore stock exchange offer some form of equity incentives to their executive directors and key employees. However, it is increasingly common for private companies - and in...
South Korea's Ministry of Health and Welfare has announced strengthened measures to combat fraud in social service electronic vouchers. Last year, detected fraudulent claims reached 47.88 billion w...