Optimisation of remuneration components

Employee shareholding and savings

EXPERTISE

Finding: through various reforms, the public authorities have encouraged companies to implement employee shareholding and savings schemes. This encouragement is reflected by an easing of the rules for implementation and an increase in applicable exemptions.

These schemes:

  • For employee savings: profit sharing, share ownership, savings schemes
  • For employee shareholding: free share allocations, stock options, BSPCE founders’ share warrants or capital increases reserved for employees

are now essential and are a means of motivating or retaining employees whilst enabling your company to pay optimal remuneration from a tax and social security perspective.

Conducting an overall review of your remuneration policy is therefore vital in order to establish which schemes are best suited to your company.

FACTORHY supports you with:

  • the implementation and development of all your employee shareholding and savings schemes. It is essential that these schemes are sound from both a URSSAF and an employment law perspective, or at least that decisions are made with full knowledge of the facts
  • any issues that may arise over the terms of these schemes (occurrence of restructuring operations, tax base correction, problems related the distribution of profit-sharing and share ownership rights, adaptation and review of the schemes implemented pursuant to legislative changes in order to benefit from all the means of optimisation applicable to your company at all times)

CLIENT CASE STUDY

An example of our work: the ‘collective remuneration advisor’ lawyer

Background: a company wishing to reshape its employee savings policy

Action: identify the employee shareholding and savings schemes suitable for the company, establish the terms for calculating the profit-sharing mechanism, establish the terms for distributing profit-sharing and share ownership rights, draft agreements and other legal documents, propose turnkey calculation formulas

Result:   a continuous optimal remuneration policy enabling application of the most favourable tax and social security treatment

Optimising executive remuneration

EXPERTISE

Finding: listed or unlisted group companies should implement specific remuneration policies for their senior executives and management: as with their other employees, it is a very effective means of attracting and retaining talent

Our response: support companies in the implementation of specific authorisation and information procedures (“say on pay”, regulated agreements, corporate governance reports, etc.)

CLIENT CASE STUDY

An example of our work: the ‘remuneration strategy’ lawyer

Background: a listed company intends to set up personal injury and healthcare cover for its non-executive chairman

Action: identification of the benefit awarded: subscription and financing of the insurance policy throughout the term of office and determination of the appropriate procedure: regulated agreement and “say on pay”

Result: remuneration elements secured

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