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ARTICLE · 30 JANUARY 2025

Share Option Agreements In Turkey: Legal Framework And Practical Uncertainties

Allowing employees to own company shares and signing share option agreements for this purpose has become an effective method for enhancing employee loyalty and incentivizing performance.

TurkeyCorporate/Commercial Law

I. Introduction

Allowing employees to own company shares and signing share option agreements for this purpose has become an effective method for enhancing employee loyalty and incentivizing performance. While different types of share option agreements are frequently used in practice to achieve this goal, the lack of legal regulations and limitations in practice under Turkish law pose significant challenges for companies in establishing share ownership plans for employees.

This article provides an analysis of the methods that can be employed to grant employees real share ownership within the framework of the Turkish Commercial Code No. 6102 (the "TCC") for private joint stock companies and addresses the key considerations in implementing these methods.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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