The differrence between shares & bonus
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Overview of shares & bonus
There are quite a few differences and similarities between shares and bonus. To help you make a choice, we've listed the most important points below.
Compare the different plans below
What does it mean?
Shares are ownership rights in a company. The owner of shares participates in the profit the company makes.
A bonus is an agreement for compensation when certain targets are achieved.
How does it work financially for employees?
Shares allow employees to directly benefit from the increase in the company's value.
Employer and employee agree on goals with corresponding compensation. If the goals are achieved, the compensation is paid.
What about employee engagement?
Shares create the highest form of engagement, as employees are involved in the decision-making process through voting rights.
The bonus is not tied to the company's increase in value, so the employee does not directly benefit from potential increases in value. Also, the employee does not get voting rights.
What about tax implications for the employee?
If the employee buys <5% of the shares, they pay no tax on purchase or sale. However, the employee does pay box 3 tax. If the employee buys >5% of the shares, the shares are taxed in box 2.
A bonus is taxed as income. The amount of tax depends on the employee's income.
What are the costs?
In addition to the share plan, shareholders' agreements must be signed, and everything must be recorded through a notary.
A bonus is just a contract. There are no costs outside the bonus plan.
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