Document background
The Equity Incentive Agreement serves as a foundational document for companies operating in the Netherlands who wish to implement share-based compensation programs for their employees, executives, or other eligible participants. This document is particularly crucial for startups, scale-ups, and established companies seeking to attract and retain talent by offering equity participation. The agreement must comply with Dutch corporate law, tax regulations, and financial markets legislation, including specific requirements for tax treatment of equity awards under Dutch law. It typically includes detailed provisions about award types (such as stock options, restricted stock units, or direct share grants), vesting schedules, exercise conditions, and various scenarios such as corporate transactions or employment termination. The document also needs to account for specific Dutch requirements such as works council consultation where applicable, and GDPR compliance for personal data processing.
