The differrence between shares & options
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Overview of shares & options
There are quite a few differences and similarities between shares and options. 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.
Options give the right to buy shares in the future.
How does it work financially for employees?
Shares allow employees to directly benefit from the increase in the company's value.
Stock options allow employees to benefit from an increase in the company's value.
Also, employees only invest when they exercise the options, so they do not lose their investment in case of a decrease in value.
Also, employees only invest when they exercise the options, so they do not lose their investment in case of a decrease in value.
What about employee engagement?
Shares create the highest form of engagement, as employees are involved in the decision-making process through voting rights.
Employees receive shares only when they exercise the options. Only then do they 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.
The difference between the exercise price and the purchase price of the option is taxed as income.
What are the costs?
In addition to the share plan, shareholders' agreements must be signed, and everything must be recorded through a notary.
This is just a contract. The shares only need to be notarized when exercised.
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