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
The allocation of options
under section 102 is a general statement that is used as a slang that holds a
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).
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
‘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,
Then let’s talk. Call us, write us a
Email or ask us for an appointment.