Hurdle Shares as an Instrument for Management and Employee Participation - McDermott Will & Emery

Hurdle Shares as an Instrument for Management and Employee Participation

Overview


Management and employee shareholdings are intended to convey an economic participation in the success of the company. They create interest alignment with the shareholders and are therefore an effective instrument for motivating and retaining employees. In addition, they offer an attractive argument when recruiting employees in the competition for the best talent. The participation models are usually aimed at real or synthetic participation in the equity of the company and, depending on their design, can also convey participation under company law.