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An Equity Incentive Plan lets Irish companies reward and retain key employees by offering them ownership stakes in the business. These plans typically include share options, restricted stock units (RSUs), or other equity-based awards that vest over time, aligning employee interests with company success.

Under Irish company law and Revenue guidelines, these plans must clearly outline vesting schedules, exercise prices, and tax implications for participants. Companies often use these plans to compete for talent, especially in Ireland's thriving tech and pharmaceutical sectors, while benefiting from tax advantages when structured properly.

Consider implementing an Equity Incentive Plan when your Irish company needs to attract top talent or retain valuable employees in competitive markets. This strategy works especially well for startups and growing companies that want to preserve cash while offering compelling compensation packages.

The timing is right when your company faces recruitment challenges, prepares for expansion, or needs to motivate key staff toward specific business goals. Many Irish tech firms introduce these plans before Series A funding rounds, while established companies often create them when entering new markets or launching major projects that require long-term employee commitment.

• Share Options: Most common in Irish tech startups, offering employees the right to buy company shares at a fixed price
• Restricted Stock Units (RSUs): Popular with established companies, granting actual shares that vest over time
• Performance Share Plans: Links equity rewards to specific company or individual targets
• Save-As-You-Earn (SAYE): Tax-efficient scheme allowing employees to save money monthly to purchase shares
• Growth Shares: Creates a special share class that only gains value when company value exceeds a set threshold

• Board of Directors: Approves and oversees the Equity Incentive Plan, setting overall terms and allocation limits
• Company Secretary: Handles documentation, regulatory filings, and maintains share registers
• HR Department: Administers the plan day-to-day, communicates with participants, tracks vesting
• Legal Counsel: Drafts plan documents, ensures compliance with Irish company law and Revenue requirements
• Plan Participants: Employees, executives, and consultants who receive equity awards under the plan
• Revenue Commissioners: Reviews plan structure for tax compliance and applicable relief schemes

• Company Details: Gather your company's share capital structure, existing shareholders, and authorized share pool
• Plan Parameters: Define total shares available, eligible participants, vesting schedules, and exercise prices
• Tax Strategy: Determine optimal tax treatment under Irish Revenue guidelines for both company and participants
• Board Approval: Prepare board resolutions authorizing the plan and initial share allocation
• Documentation: Draft award agreements, participant communications, and vesting tracking systems
• Compliance Check: Ensure alignment with Companies Act requirements and Revenue reporting obligations

• Plan Purpose: Clear statement of objectives and scope of the equity incentive program
• Eligibility Criteria: Detailed definition of who can participate and selection process
• Award Terms: Specific details on share types, vesting schedules, and exercise conditions
• Administration: Powers and duties of the board or committee managing the plan
• Tax Provisions: Irish Revenue compliance requirements and tax treatment explanations
• Termination Rules: Procedures for handling awards upon employment cessation
• Amendment Rights: Company's authority to modify plan terms and participant protections
• Governing Law: Explicit statement of Irish law jurisdiction and enforcement

An Equity Incentive Plan often gets confused with a Simple Agreement for Future Equity (SAFE), but they serve distinct purposes in Irish corporate law. While both involve company equity, their structures and applications differ significantly.

• Purpose and Scope: Equity Incentive Plans are comprehensive, long-term programs for rewarding multiple employees, while SAFEs are individual investment instruments typically used for early-stage funding
• Implementation Timeline: Incentive plans involve gradual vesting over years, whereas SAFEs convert to equity at specific trigger events like funding rounds
• Legal Structure: Incentive plans require board approval and ongoing administration, while SAFEs are one-off agreements between the company and individual investors
• Tax Treatment: Incentive plans fall under specific Revenue guidelines for employee compensation, but SAFEs are treated as investment instruments with different tax implications