Grant of Shares to Employee: Share Agreement

Key points and English template

On this page, we provide you with an overview of the most important aspects of a Share Agreement in Switzerland, including the elements to be taken into account when drawing up the agreement.

Subsequently, we will provide you with a legally compliant template of an employment agreement under Swiss law.

Use a Share Agreement if...

…you have a participation plan in place under which employees can become shareholders of your company

… you want to give a certain employee the opportunity to buy shares in your company 

Key Points included in a Share Agreement

What is a Share Agreement?

In an employee share participation plan, a company sets forth the rules under which it grants shares to all or some of its employees (for example, senior employees). 

Unlike an option-based compensation plan, the employee directly receives shares and thus becomes a shareholder, after he or she has paid the purchase price. The latter is generally lower than the value of the shares. 

The goal of the plan is broadly to incentivize key persons to stay with the company and perform by allowing them to participate in its financial success. 

The actual grant of shares to individual employees pursuant to the plan can be done using different legal instruments. The use of a share agreement as provided for here emphasizes that the undertakings of the company and the employee are reciprocal: on the one hand, the company undertakes to transfer a certain number of shares to the employee (usually on preferential terms), on the other hand, the employee undertakes to pay the price of the shares in accordance with the agreed terms. Also, the share agreement may stipulate that the shares will be blocked for a certain period of time, which allows for retention of the employee and certain tax benefits.

Please create a free account and log in to your Approovd account. You can start creating the document you want and, only when you are convinced of its quality, you can choose the appropriate subscription

All our templates have been checked and validated by renowned Swiss lawyers. They are constantly updated according to legal practice.

Your Contract in 3 Steps

Buy the documents you need and create your account

Answer questions with the help of virtual assistance and create your contracts in minutes

Download your contracts as Word or PDF. Get help from a lawyer if needed

This might also interest you

Employee Participation Plan: Shares
Agreement for the Use of a Company Car
Loan agreement

Create clever contracts today

Discover our contract library with over 200 smart templates in English, German and French. 

Happy business woman using Approovd for innovative contract management