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Grow Together – Build Future with Employee Stock Ownership
01
Employee Incentive
ESOPs serve as a powerful incentive to retain and reward key talent by offering ownership stakes.
02
Customizable Conditions
Сompanies can tailor ESOPs to meet specific requirements, such as vesting periods, performance benchmarks, and share valuation.
03
Enhanced Engagement
ESOPs encourage employees to perform better, as their success is directly tied to the growth and profitability of the company.
We specialize in assisting businesses in preparing comprehensive ESOP policies tailored to their specific needs and legal frameworks. From identifying key objectives to drafting clear terms and conditions, we ensure your ESOP policy complies with UAE law and meets all regulatory and strategic goals.
Beyond policy preparation, we support complete implementation and realization of your ESOP. Our expertise covers every step upon execution, including preparation of respective share transfer agreements, issuance of additional shares and their transfer. ESOPs are generally realized through mechanisms such as share transfer agreements or gift agreements which require careful planning and precise legal documentation.
Legislation in the UAE mainland is yet to be as advanced as in some of the free zones. While the introduction of ESOPs was alleviated in 2015 by the cessation of pre-emption rights for existing shareholders in public companies, which previously prevented option beneficiaries from entering the company, the legislation still has room to develop regarding the practical implementation and regulation of ESOPs.
Only DIFC and ADGM provide certain regulations regarding ESOP structures under their corporate frameworks. Companies do not have a mandatory specific scheme to adopt when it comes to ESOP, which leaves companies in charge to plan them as they prefer and based on their own discretion.
01
Pre-emption Rights Exception
ADGM Companies Regulations provide an exception to pre-emption rights, allowing companies to allocate equity securities under an employee share scheme without offering them first to existing shareholders.
02
Off-Market Share Purchases
ADGM Companies Regulations permit companies to make off-market purchases of their own shares for ESOP purposes, provided such actions are authorized by a company resolution specifying the maximum number of shares and price ranges.
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