Employee share options are a popular method utilised by
companies to incentivise their employees by offering them the
opportunity to acquire shares in the company as part of their
remuneration package. This practice aims to align the interests of
employees with those of the company and its shareholders, fostering
loyalty, motivation, and a sense of ownership among employees.
Legal Framework
So far, there are no specific legal frameworks in Malta for
companies providing share options to their employees. In this
sense, companies are free to structure their own share option
schemes in conformity with the applicable Maltese laws, such as
the Companies Act (Chapter 386 of the Laws of
Malta) and the Income Tax Act (Chapter 123 of the Laws of
Malta). Moreover, companies must comply with the reporting
requirements set forth by regulatory authorities, such as the Malta
Financial Services Authority (the ‘MFSA') and the
Inland Revenue Department.
