ARTICLE · 18 FEBRUARY 2023

Sharing the love: Part two – Employee equity

Sajen Legal

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Employee share options and equity incentives can be valuable tools, but they may also come with a range of disadvantages.

AustraliaEmployment and HR

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Employee share options and equity incentives can be powerful tools for attracting and retaining top talent, aligning employee and shareholder interests, and motivating employees to contribute to the success of a company. However, there are also potential disadvantages to these types of incentives that companies should be aware of when considering their use.

One disadvantage of equity incentives is that they can be complex and costly to administer. Companies must carefully design and implement their incentive plans, which can require the assistance of legal and financial advisors. There may also be ongoing costs associated with maintaining and updating the plans, including the expense of issuing and transferring shares.

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