EMPLOYEE SHARE OPTIONS SCHEMES
We Ensure Your Success Through Your Employees.
A company is only as good as its employees. Whether you are publicly listed, privately owned, or a multi-national organisation, BoardRoom is primed to expertly handle all facets of your employee share plan — from the design phase through to implementation and share plan administration. Our seamless process, enabled by our panel of experts and practical tools, has led us to be highly successful in providing Employee Stock Options Plan (ESOP) services across APAC.
01 Purpose-Built For Your Business Needs - Flexible Employee Plan Services Through Our Powerful Digital Platform.
We deal with all facets of your Singaporean-based or global employee equity plan, from the design phase through to employee share plan implementation and administration, and our tools and expertise ensure the process is seamless.
In our experience, it’s just not possible to come up with a single employee equity or stock ownership plan that will work for everyone. That’s why we’ve designed our digital platform to be completely flexible, so we can provide you with a solution that’s purpose-built to meet your needs, increase efficiencies and reduce cost, all while complying with current and future reporting requirements.
Our dedicated employee plan division is made up of senior staff with significant experience who provide you and your employees personalised assistance from start to finish. Whether you have one employee or 100,000, we help add value to your organisation across various types of equity and employee share option schemes designed for employees including:
- Performance Share Plan (PSP)
- Restricted Share Plan (RSP)
- Share Appreciation Rights Plan (SARS)
- Employee Stock Options Plan (ESOP)
- Phantom Share Plan
- Employee Share / Equity Plans Administration & Management
- Any tailored or customized Employee Share Scheme or Long Term Incentive Plan (LTI)
Find out why many of Singapore’s largest employers have chosen us to manage their employee equity plans.
02 We Deliver Results - Our Winning Formula Is Powered By:
- Our fully customisable regional Employee Share Option Scheme system with an intuitive branded employee portal.
- Our client-centric approach as every business and organisation is unique.
- Local support teams that provide a proactive approach to tailoring our solutions to your needs.
- Experienced team and senior staff that are up to date with each jurisdiction’s unique legal, taxation and regulatory changes.
- An extensive partner network offering plan development, brokerage and nominee services.
- A transparent fee structure allowing you to save costs when it comes to employee stock ownership plans and more.
03 Learn More About EmployeeServe - Our Employee Share Plan Management Platform!
An Employee Stock Option Plan is a great way to incentivise your workforce. BoardRoom can help you create a custom-made share plan that fits the business needs of your company and modernises your share plan administration processes. If you have any enquiries, feel free to contact us. We will get back to you and work out a solution as soon as possible.
Why Choose BoardRoom?
Because we help take your business further, faster, at all stages
BoardRoom is Asia-Pacific’s leader in Corporate and Advisory Services including Regional Employee Plan Services, Regional Payroll Services, Corporate Secretarial Services, Share Registry Services, Accounting and Taxation Services, Payroll Outsourcing, and Human Resource Outsourcing.
For over 50 years, we have supported companies in navigating through complex operational and regulatory policies and cultural sensibilities. We are well-positioned in Asia-Pacific with offices in Singapore, Australia, China, Hong Kong, and Malaysia, as well as an extensive partner network throughout Asia.
BoardRoom is the partner of choice for many Fortune 500 multinational companies, public listed and privately owned enterprises.
Frequently Asked Questions (FAQs)
1. What is an employee stock option plan (ESOP)?
Employee Stock Ownership Plans or ESOPs in short, is one form of remuneration given to employees, by means of retaining them or to reward them based on their performance. An option serves as a right to acquire shares of a company at a predetermined price, or what we call an exercise price.
2. How do employee stock option plans (ESOP) work?
The function of an ESOP plan can be broken down into a five lifecycle stages which are Offer, Vesting, Exercise, Leaver and Lapse. An employee will firstly accept an option offering, whereby a fixed number of options will be allotted to them. After a certain timeframe, a proportion of the allotted options will vest, which means that these options can now be exercised.
To exercise these vested options, the employee will pay the total exercise cost (number of options x exercise price) and receive actual shares of the company thereafter. If they don’t exercise these vetsed options after the expiry date, these vested options will lapse or expire. If this happens, the participant can no longer exercise these options moving forward. If the employee leaves the company halfway through the ESOP lifecycle, in some cases, all of their vested and unvested options will lapse altogether, depending on the company’s ESOP rules.
3. What is an employee share plan (ESP)?
An employee share plan is a remuneration package, where employees are rewarded with ordinary shares in the company they are employed by. These share plans are usually offered as a form of remuneration in replacement of salary increases which can help benefit a company’s cash flow.
This plan is usually given to directors or upper level management, where the employee is rewarded with ordinary shares of the company, if they fulfill certain criteria or performance metrics set forth by the company. Initially, the participant (director or senior manager) will be allotted X number of restricted shares. At each vesting period (usually annually), a proportion of the allotted shares will be vested and become unrestricted shares, where the participant can then enjoy the benefits of owning an actual share (i.e. Sell, Voting Rights, Dividend Pay-out). The number of shares to be vested and turned into unrestricted shares, will depend on the participant’s performance during their evaluation period.
There are two main types of Employee Share Award Scheme (ESAS), namely a Performance Share Plan (PSP) and a Restricted Share Plan (RSP). Please visit our article for more detailed information on “What is an Employee Share Plan?”.
4. What are the key differences between an ESOP and ESP?
- For ESP, expenses need to be captured in the company’s accounting books even at point of grant.
- For ESOP, if the participants decide to exercise their options, they will have to bear the exercise cost. This means there’s cost savings to the company.
- For ESOP, it may be suitable for companies looking for fast growth, because participants only get to enjoy the benefits of their stock options when the market price is greater than the exercise price.
- For ESP, it may be suitable for companies looking for stable growth. Reason being, part of having an ordinary share is to reap the benefits of its dividends. And to do so, the company will have to ensure stable growth to ensure consistent payout of dividends.
5. Is ESOP beneficial for employees?
ESOPs are considered to be beneficial to both employees and shareholders.
This is because the system is designed to align the interests of employees and shareholders, as well as motivate employees by giving them ownership in their company, as well as considerable tax benefits.
When employees are rewarded with shares of the company, this means that they own a portion of the company. This allows employees to adopt an ownership style of thinking where their actions and decisions will be based on the greater good of the company in the long run.
6. How can BoardRoom help in ESOP and ESP services?
BoardRoom has been providing ESOP & ESP services to clients across APAC for years. We have a dedicated team of experts to guide you through all your implementation and administration needs. Our powerful digital platform, EmployeeServe, is completely flexible to your specific requirements because we recognise there is not a “one size fits all” solution to Share Plans.
EmployeeServe allows participants to view, transact and manage their holdings as well as allowing the administration team to view participant holdings and generate insightful reports that will assist with their regulatory and management reporting. For more information on our ESOP services, please contact our professional ESOP consultants today