Employee options

A company grants its employees the opportunity to acquire ownership rights in the company itself or in a related company. Particularly in the case of new business starts (start-ups), this may reduce the wage expense. – Employee options are regarded as a component of wages and are subject to taxation at the latest at the time of irrevocable acquisition of rights – allocation, also known as vesting (ownership by an employee of benefits contributed on the employees behalf by an employer). – See labor costs, fringe benefits, wage drift, unit labor costs, premium, loss absorption, personal.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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