In recent times share option plans have grown in popularity, especially in Europe, being a great way to motivate and reward employees for their contribution to the company. The main demand for share option plans comes from start-up companies, as it is the perfect tool to reward current employees and attract new and motivated talent.
Nordigen has decided to implement an ESOP (Employee Share Option Plan) that gives every team member the opportunity to become a possible “co-owner” of the company, by issuing share options to all current and future employees of the company.
The best share options in Europe
Nordigen is headquartered in Latvia, which according to Index Ventures ranking has the best share option treatment in Europe. The ranking takes into consideration a wide variety of factors, including how friendly each country's legal framework and tax rate is regarding employee share options.
By implementing ESOP under the Latvian share option law, Nordigen has provided its employees with the best share option treatment available right now, with more favourable employee tax timing than the UK and better employee tax rate than US alternatives.
“Share options allow employees to have a share in the success of the startup, which is paramount for attracting top talent, having highly motivated and focused teams. We believe that it’s no longer possible to build the next unicorn without having such a motivation scheme”, Roberts Bernans, Nordigen co-founder.
If you would like to know more about ESOP, our article explains all the main characteristics of a share option plan in Latvia.
ESOP is a remarkable tool to reward employees, and the proof is already out there
If there were any doubts that ESOPs are remarkable tools to reward employees, the proof is already out there for anyone to see. It was recently revealed by Sifted that startups like Revolut and Transferwise have turned many of their employees into millionaires, thanks to their share options plan.
Revolut has turned “at least 76 past and current employees” into millionaires, with over 12 of them holding more than $10m+ worth of shares according to a Sifted analysis. TransferWise, now known as Wise, had already minted 150 millionaires by May of 2019 when the company’s valuation was sitting at $3.5bn.
These real life examples are the proof needed to support the claims that ESOPs can be the perfect solution, both for the employees and the companies.
At Nordigen, motivation and focus are key elements to achieve its goals and overall success. With the intent of creating a stronger team and unity between every element of the company, the ESOP implementation was a “no-brainer”.
“Success breeds success. We want our employees to get their fair share when the company is doing well. Only strong communities will thrive”, Roberts Bernans.
Since one of the main goals is to provide a sense of ownership to employees, it would only make sense to make the ESOP available to every team member. Everyone is pushing forward in the same direction and with a strong focus on the company’s vision, which will result in achieving better results at a higher pace.